
Book > Grg 



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CSfFSRlGm DEPOSm 



THE SHAW SELLING SERIES 



Edited by 

Tbb Buiusau of Business Standabdb 

THE SHAW PUBLICATIONS 



THE SERIES: HANDLING SALESMEN AT LOWER COST; 
MORE SALES THROUGH AD\T:RTISING; ORGANIZING FOR 
INCREASED SALES; GOOD WILL, TRADE-MARKS. AND UN- 
FAIR TRADING; GRAPHIC AND STATISTICAL SALES HELPS. 




IMAGINATION— MASTER FORCE 

THERE is always room for a man of 
force, and lie makes room for many. 
Society is a troop of thinkers^ and the 
best heads among them take the best 
places. A feeble man can see the fanns 
that are fenced and tilled, the houses that 
are built. The strong man sees the pos- 
sible houses and farms. His eye makes 
estates as fast as the sun breeds clouds. 



— Emenon 



GRAPHIC AND 
STATISTICAL SALES HELPS 



COMPARATIVE AND STATISTICAL DATA FOR SALES EXECU- 
TIVES ON MANUFACTURING, WHOLESALING, AND 
RETAILING— CHARTS, GRAPHS, AND SPECIAL 
MAPS WHICH VISUALIZE SELLING FACTS 




A. W. SHAW COMPANY 

CHICAGO NEW YORK 

LONDON 






copyright; 1920; BY A. W. SHAW COMPANY 



FBIBTBD Xm THS nSnSD STATBS OV AMBBIOA 



JL'«2/ /920 



WHY THIS BOOK IS OF VALUE TO YOU 

NOWHERE are charts, graphs, maps, comparative 
data and cost figures of more value than in the 
sales end of a business. That is why this volume 
has been included in the Shaw SelUng Series, for it 
tells you just how statistics and visual records of 
many types have profitably been put to use to help in 
estimating costs, in outlining selling campaigns and 
policies, and the like. 

Of course, records and charts must actually be used 
if they are to get results. No matter how good a chart 
may be, unless the information it pictures is vitalized — 
put into practise for bigger selling results — it is of 
little use to you in meeting your selling problems. 

As you thumb through the volume you will find 
many tabulations indicating the business death rate, 
costs of doing business, production costs and other 
valuable data bearing directly on the manufacturing, 
wholesahng, and retailing branches of commerce. 
This material was collected during a period not affected 
by abnormal business conditions and the question of 
w^hether or not they still hold good will occiu* to you, 
because you will have in mind the radical influences 
on materials and prices during and after the Great 
War. This note is inserted here to answer any 
question you may have on this point. 

The Bureau of Business Standards of the Shaw 
Publications has been constantly watching the effect 
of current economic changes on the figures. As a 
result the Bureau has decided that the figures remain 
indicative and that you will find them as useful now 

vii 



PREFACE 



as when they were first collected. Otherwise the 
Bureau would have supplied new figures from its 
current studies. 

The reader should bear in mind that the cost figm*es 
are expressed in percentages. The recent increases in 
the cost of production have been accompanied by a 
corresponding increase in the market price of these 
products and also in the general demand for them. 
The same is true in wholesale and retail circles. 
Naturally it costs more in dollars and cents to run a 
store or manufacture a certain product today than it 
did five years ago, but the percentages of costs 
(expressed as percentage of the total sales) have held 
about the same. 

As a matter of fact, in stores of a certain type, 
particularly department or ''general" stores in cities 
around 30,000 to 50,000, increases in the cost of doing 
business have been very small indeed. 

Here is an instance which indicates how accurate 
the Bureau has been in making these conclusions. 
The Bureau of Business Research of the Harvard 
Graduate School of Business Administration recently 
announced the results of an investigation into the 
current cost of selhng hardware at retail. It placed 
the common cost at 20.6% of sales. On another 
page of this book you will find the figures placed at 
20.6% of the sales. You see the percentages have 
remained the same while the actual costs changed 
under them. The explanation is merely that the 
percentages figured on the sales cloak the higher 
costs. The book should therefore help you materially 
to ferret out hidden cost increases and suggest ways 
to meet them. 

The statistics contained in this volume are the 
most recent available at the time of going to press, 
and regardless of the year of origin will serve the 



PREFACE 



main purpose for which they are inserted — to indicate 
trends and underlying percentages — as the price 
fluctuations characteristic of late years, and probably 
in store for coming years, throw all data of their type 
into rearrangement. Except as otherwise noted the 
figures are in the main for 1917, the principal excep- 
tions being: page 35, 1915; pages 11, 18, 19, and 24 
to 28, 1909; page 173, 1914 (incomes); page 98, 1910. 
Later figures, the very latest continuing those in 
any table in this book, may be secured for the asking 
as soon as they are available, by any purchaser of the 
volume on request to the Librarian of the Shaw 
Publications. 



IX 



CONTENTS 



PART I 

Production Data and Figures which Help in 

Selling 1 

A detailed death rate record for factories. Death rate 
by "generations" for 14 manufacturing lines. The ex- 
pectancy of life for a new manufacturing business. 
Commercial mortality figures for 33 manufacturing con- 
cerns. How long will my factory probably live? How 
to figure how long the average business will exist. Data 
that make it possible to figure the chances a new 
enterprise has. Of what value are figures to a business? 
How to use figures and statistics rightly. Production 
data and figures. How does the total number of manu- 
facturers in your state compare with other states? The 
average number of persons served by individual concerns 
in manufacturing lines. Tables from a typical industry. 
Tendencies indicated by these statistics. Concentration 
of concerns in this industry by states. How establish- 
ments in a typical industry are concentrated. How 
concerns manufacturing in a typical industry are dis- 
tributed. Cost figures for the manufacture of clothing. 
Distribution of concerns manufacturing in a typical line. 
The amount of raw materials used in the manufacture 
of essential products. Analyses of 18 representative 
industries. 

PART II 

Comparative Data and Figures from Wholesale 
Lines 33 

Why a painstaking analysis of costs and business con- 
ditions is imperative in wholesale concerns. Wholesale 
coiicems in the United States, by lines. Recapitulation 
of the wholesale trade. How eight wholesale lines are 

xi 



CONTENTS 



distributed by states. Indicated typical and attainable 
cost-of -doing-business figures for wholesalers. Itemized 
cost tables from representative wholesale lines. Total 
costs of doing business by lines. Wholesale selling costs. 
The cost of advertising. What "ofl&ce expenses" cost 
wholesalers. The cost of general expenses and what they 
include. Administrative salaries and wages among 
wholesale dealers. Packing and shipping costs for whole- 
sale dealers. What M^holesalers pay for rent. Light, 
heat, and power costs. What do wholesalers pay out for 
insurance and taxes? The cost of bad debts in wholesale 
lines. Indicated typical and attainable cost standards by 
lines for wholesale concerns doing an annual business of 
$500,000 to $1,000,000, and for concerns whose annual 
sales are less than $500,000. Cost figures by lines for 
concerns whose sales total more than $1,000,000. Average 
cost figures from wholesale dealers in 11 states. Death 
rates by "generations" for 16 wholesale lines. Death 
rate for 28 wholesale lines during a period of 30 years. 
What chance of life has a wholesale concern? 



PART III 

Retail Data and Figures to Help You Check 

Distributive Expenses 87 

How reliable cost standards can be used to find weak 
points in merchandising structures. Why retail figures 
are of service to manufacturers and wholesalers. Retail 
dealers in the United States by lines. Per capita figures of 
retail stores by lines. Ratios of merchants to total popu- 
lation. The number of concerns in retail hues by states. 
A classification of persons engaged in retailing. An 
analysis and summary of the trading concerns in Massa- 
chusetts. A comparison of the total amount of goods 
manufactured with the total population and with the 
total number of persons gainfully employed. How 
Massachusetts trading concerns are classified by manner of 
seUing. The percentage cost of selling by departments in 
New York department stores. The extent to which chain 
stores are becoming an independent distributive factor. 
Average percentages for salaries of salespeople. The 
average number of turnovers obtained annually in retail 
lines. How rates of turnover for city department and 



CONTENTS 



country general stores compare. National rate of turn- 
over averages from 700 American stores for 10 standard 
types. Average rates of turnover from departmentalized 
stocks for 12 representative lines. Profits in 60 lines 
and trades. Typical gross profits. Typical net profits for 
retail stores by lines. Typical gross profits for depart- 
ment stores. Typical profits and costs by trades. 
Depreciation and shrinkage losses in retail lines. The 
cost of supplies. The heat, light, and power costs of 
retailers. The cost of general expenses in retailing. Bad 
debt losses from the books of 1,000 stores. What it costs 
retailers to deliver by electricity. National deUvery cost 
standards. The percentage cost of advertising normally 
paid for by retailers. Percentages of retail sales spent for 
insurance and taxes. Analyses of the costs of doing busi- 
ness and profits from 38 stores in cities of from 7,500 to 
300,000 or over, in 24 states. Cost averages and expenses 
by lines from the books of 1,569 retail concerns. A com- 
prehensive analysis of the operating costs of one represen- 
tative retail business. How these figures can be used 
profitably by merchants of other lines. Death rate of 
retail concerns. Death rate by ''generations'.' for 10 retail 
lines. How fast 1,615 retail stores died. The life and 
death records of 2,550 retail concerns during a period of 
30 years. Mortality figures by ''generations" for 10 retail 
lines. Will my store keep going for 15 years? Changes 
in retail dealers in typical cities during a period of 22 
years. WTiat are the causes for discontinuing business? 
WTiere the merchants of todaj^ are coming from. Brad- 
street's classification of business failures. Data on the 
per capita consumption in the United States of essential 
products. Total income taxes paid in each state by 
individuals and corporations. How do American famihes 
spend their incomes? An analysis of the expenses of an 
average American family. 



/ 



Index 177 



Xlll 



PART I 

PRODUCTION DATA AND 

FIGURES WHICH HELP 

IN SELLING 



PART I 

PRODUCTION DATA AND FIGURES 
WHICH HELP IN SELLING 

THE saying, "figures never lie/' is not strictly- 
true, you will agree. Figures may be made to 
misrepresent, but they may also be made a most 
effective method for "taking the pulse" of a business. 

Statistics are dry — no question about that — but 
their dryness usually is most clearly apparent to the 
man who lacks imagination with which to picture the 
conditions reflected by the figures. Figures plus imagi- 
nation will usually prove mighty interesting to any man 
who is actively associated with the business from which 
the. figures were derived. 

Most sales executives who have taken up the study 
of statistics as an aid in solving problems of sales 
management are enthusiastic about them. By means 
of figures they are able, they declare, to observe business 
tendencies more accurately than before, and to take 
advantage of their full significance. Parallel sets of 
figures — one a standard or normal, against which the 
other set of actual figures may be compared — show up 
weak spots in methods unerringly, as a rule. 

The purpose in this volume is to present statistics 
of value to business in all fines and localities. The 
task has been one of elimination — to discard figures 
which held out no particular advantage to business 
men. For a man may get up a set of figures, if he 
wishes, on almost any conceivable subject, and be 
scarcely better off than he was before. 



GRAPHIC SALES ANALYSIS 



Here, on the other hand, each table of figiu*es has 
been subjected to the tests of utUity and interest to 
those who read these books. These figures are an 
assembUng of facts in the form of numbers and per- 
centages, which have a bearing upon the methods and 
policies described in the other volumes. They may be 
of direct value to you, or they may suggest how you 
may draw up, easily and quickly, similar information 
about your own business. In either event, they perform 
a most useful function. 



PRODUCTION DATA AND COST FIGURES 

Have you ever wondered if there are figures available on 
the business death rate of manufacturing concerns more or 
less like those on the death rate among men and women? 
Here are some interesting figures of this sort, based on care- 
ful first-hand investigation. These figures are important in 
judging any production problem — for they indicate the 
importance of knowing all the facts, of carefully allowing 
for all eventualities, before the cost of producing is finally 
settled upon. Production plans undertaken without full 
knowledge of all that may be ahead explain a large part of 
the business death rate. 



DEATH RATE OF MANUFACTURING CONCERNS 
(The rate is given as the percentage of failures to 
total in the business during a period of 30 years) 

Line Rate 

1. Furniture 53.7% 

2. Flour and grist mill products 53 . 0% 

3. Iron-works products 58 . 9% 

4. Printing 48.2% 

5. Lumber and timber products 75.0% 

6. Boots and shoes 57 . 1% 

7. Cigars and tobacco 75 .4% 

8. Hosiery and knit goods 30 . 0% 

9. Creamery products 56 .5% 

10. Brass, bronze, and copper products 52 . 1% 

11. Clothing 43.3% 

12. Drugs 68. 1% 

13. Automobiles 57. 1% 

14. Carriages and wagons 71 . 6% 

Death rate for 14 leading lines 57. 1% 

Death rate for 199 other lines 66.9% 

Death rate for 1,327 factories in 213 lines. . 62.0% 



GRAPHIC SALES ANALYSIS 



DEATH RATES BY * 'GENERATIONS" FOR 
14 MANUFACTURING LINES 

(Percentage of total concerns which died within each 5- 
j-ear period) 

Line 1891 1896 1901 1906 1911- 

Furniture 62% 25% 58% 39% 45%, 

Flour and grist mills 16% 33% 

Iron-works 44%, 33% 44% 50% 50% 

Printing 33% 60% 33% 40% 40% 

Lumber and timber 60% 75% 66% 66% 50% 

Boots and shoes 50% 

Cigars and tobacco.. 52% 62% 63% 45% 77% 
Hosiery and knit 

goods 33% 

Creamery goods.... 100%o 60%, 100%, 75% 50% 
Brass, copper, and 

bronze 75% 50% 66% 50% 40% 

Clothing 33% 50% 14% 42% 

Drugs 66% 80% 90% 33% 80% 

Automobiles 100% 

Carriages and 

wagons 63% 92% 41% 33% 20% 

EXPECTANCY OF LIFE FOR A NEW 
MANUFACTURING BUSINESS 

In business 5 years or less 6 

In business between 5 and 10 years 4 

In business between 10 and 15 years 5 

In business between 15 and 20 years 1 

In business between 20 and 25 years 

In business between 25 and 30 years 

MORTALITY FOR 33 PLANTS 

In business 5 years or less 17 

In business between 5 and 10 years 5 

In business between 10 and 15 years 5 

In business between 15 and 20 years 2 

In business between 20 and 25 years 1 

In business between 25 and 30 years 



PRODUCTION DATA AND FIGURES 5 

These tables are based on figures showing the number of 
concerns that ''died" in less than 30 years. Wholesale and 
retail chances for life, as indicated by figures secured through 
investigation in these lines are shown in the two other sec- 
tions of the book and should be referred to in analyzing 
these figures. 

HOW LONG WILL MY FACTORY PROBABLY LIVE? 

Chances in 10 to live 

Line 10 Years 15 Years 

Furniture 5.0 4.2 

Flour and grist mills 8.1 5.4 

Iron works 5.6 5.0 

Printing 5.7 4.2 

Lumber and timber 3.4 2.0 

Boots and shoes 7.1 4.2 

Cigars and tobacco 4.3 .? . 9 

Hosiery and knit goods 8.3 6.6 

Creamery goods 2.5 2.5 

Brass, bronze, and copper 3.5 2.8 

Clothing 6.6 3.3 

Drugs 2.8 2.8 

Close analysis of business mortality figures suggests that 
the rate is increasing somewhat. It is quite obvious, of 
course, that keener competition, increasing costs of doing 
business and more constantly fluctuating market conditions 
are in large measure responsible for this increase because 
they are more uncertain factors today that they were 10 or 
15 years ago. While many concerns are "safe," to all 
intents and purposes, no business need feel wholly secure. 
It is too easy to skid. 

DETAILED *'DEATH RATE" RECORD OF 
FACTORIES INVESTIGATED 

In business 5 years or less 123 

In business between 5 and 10 years 26 

In business between 10 and 15 years 8 

In business between 15 and 20 years 1 

In business between 20 and 25 years 3 

In business between 25 and 30 years 



CAUSES FOR 


- 

BUSINESS DEATHS 


MANUFACTURING 


Inflexible advertising policies 


One-man domination 


Carelessness in making contracts 


Overlooking new demands 


Neglect of established line 


Poor fire protection 


Unwise experimentation 


Unstandardized product 


Concentration on unprofitable line 


Interference of stockholders 


Exorbitant overhead expense 


Lack of systematic methods 


Diffused attention 


Difficulties in getting raw materials 


Heavy borrowing 


Not investigating market before starting 


Over-production 


Bad buying 


Poor design 


Too much waste and spoilage 


Inexperience 


Trying to change market to fit product, 


Lack of capital 


rather than product to fit market 


. Poor equipment 


Too much competition 


Building on another's reputation 


Antiquated selling methods 


WHOLESALE 


Eagerness for big profits 


Lack of supply for private brands 


Lack of organization by lines 


Indiscriminate extension of credit 


Failure to cooperate with other lines 


Failure to foresee changes in style . 


Too much competition 


Poor collection methods 


Failure to advertise 


Unwillingness to help the retailer 


Overbuying 


Handling inadequately advertised lines 


RETAIL 


Failure to investigate the trade 


Undue eagerness to make a big splurge 


Unwise selection of clerks 


Labor difficulties 


Failure to build a store personality 


Bad health 


Ignorance of overhead expense 


Failure to take a legitimate profit 


Bad accounting and poor collections 


Poor stocks 


Overbuying 


increasing cost of doing business 


Cut-rate competition 


Poor equipment 


Poor delivery system 


Unsupported advertising 


Lack of capital 


Small margin of profit 


Poor location 


Returned goods 



Figure 1: These are some of the leading causes for failure in the 
locality investigated among the three classes of business. E^ch cause 
has accounted directly for a number of failures. Frequently it was 
found that failure resulted from a combination of several causes. 



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Figure 2 : To be sure that its business is receiving a proper volume 
of inquiries, and that the strength of the follow-up is right, one concern 
uses the graphs shown above, and also those shown in Figures 2 and 3. 



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Figure 3: Sales are plotted on this Figure 4: On the 18th of March, 
monthly chart, which compares re- as this chart shows, sales were sev- 
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7 




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Figure 5: This record gives a cu- Figure 6: Another record shows 
mulative record of the total sales "gross income," other than from 
for a number of years by months. sales, cumulatively by months. 





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Figxjre 7: To interpret sales flue- Figure 8: This chart showed that 
tuation, the advertising costs are 1918 sales were running like those 
kept cumulatively for each year, of 1915 and helped check a slump. 

8 



PRODUCTION DATA AND FIGURES 9 

INDUSTRIES AND MANUFACTURERS PER CAPITA 

FIGURES BY LINES 

(Population estimated 98,000,000) 

Line Number Capita Ratio 

Artificial stone products 3,548 27,621 

Bookbinding and blankbook-making 1,124 87,189 

Boots and shoes 1,355 72,325 

Bread and other bakery products. . . 25,963 3,778 

Brick, tile, and pottery 3,634 26,%8 

Butter 4,356 22,498 

Canning and preserving fruits and 

vegetables 3,153 31,113 

Carriages and wagons 4,601 21,300 

Cheese 3,082 31,797 

Clothing (men's) 4,830 20,293 

Clothing (women's) 5,564 17,613 

Confectionery 2,391 40,987 

Cooperage, 1,259 77,751 

Copper, tin, and sheet-iron work. . . 4,527 21,648 

Cotton goods 1,220 80,328 

Electrical machinery and apparatus 1,030 95,146 

Flour- and grist-mill 10,788 9,084 

Foundry and machine-shop products 14,446 6,784 

Fur goods. 1,322 74,130 

Furniture, , 3,192 30,701 

Gas (illuminating and heating) 1,284 76,324 

Hosiery and knit goods 1,622 60,419 

Ice (manufactured) 2,543 38,580 

Jewelry 1,914 51,202 

Liquors (malt) 1,250 78,400 

Lumber and timber products 27,249 3,596 

Lumber (planing mill products) . . . 6,061 16,151 

Marble and stone work 4,901 19,995 

Mattresses and spring beds 1,000 98,000 

Millinery and lace goods 2,079 47,138 

Mineral and soda waters 5,463 17,939 

Patent medicines and compounds. . . 2,903 33,755 

Printingand publishing (book and job) 12,115 8,089 
Printing and publishing (newspaper 

and periodicals) 19,317 5,073 

Saddlery and harness 2,551 38,416 

Ship- and boat-building (wooden) . . 1,068 91,760 

Slaughtering and meat-packing 1,279 76,622 



10 GRAPHIC SALES ANALYSIS 

Line, continued Number Capita Ratio 
Structural ironwork (not made in 

steel- works or rolling-mills) 1,235 71,255 

Tobacco, cigars, and cigarets 13,515 7,251 

Turpentine and rosin 1,394 71,011 

You will find in the group of tables on the pages 
immediately following a number of ideas useful in, or 
adaptable to, many lines of business. Probably yom"s 
is among them. 

These tables are taken from 'The Wool Industry," 
a Shaw pubhcation by Professor P. T. Cherington, and 
cover various phases of the wool industry. 

For business men in other Hues the usefulness of these 
statistics lies chiefly in the tendencies they indicate. 
For example, take this quotation from the preface: 

''Early in this investigation it was observed that the 
characteristics of the woolen and worsted industries 
are determined, not so much by problems of raw 
material supply, or of cloth production, as by the 
problems involved in marketing the finished fabrics. 
It became evident, for example, that the present 
relative importance of the output of worsteds as com- 
pared with woolens is not due to the greater number 
of sheep being grown which produce wool suitable for 
such fabrics. On the contrary, it appeared that what- 
ever connection exists between these phenomena, the 
change in the character of the demand for fabrics is 
the cause, and the change in the character of wool- 
growing the effect rather than vice versa. Again, the 
large scale of the worsted mills and their marked geo- 
graphic concentration seem to be largely due to the 
conditions under which staple worsteds are sold. In 
other words, it was plain that in both the woolen and 
worsted industries the casual forces in the develop- 
ment of the production activities are the wants and 
habits of the buying public.'* 



PRODUCTION DATA AND FIGURES 11 

There you have it — the ultimate consumer is the 
"boss** even of the largest trade and industrial devel- 
opments and tendencies. The manufacturer and dis- 
tributor may have a lot to do, of course, with shaping 
his needs and habits, but that is another question. 

Carrying further the analysis of wool establishments, we 
have here a table with some features of the concentration 
by states. These figures are taken from the census in the 
Tariff Board Reports. 

Number 
of estab- 
lishments 

United States 587 

Connecticut 36 

Maine 55 

Massachusetts 94 

New Hampshire 33 

New York 30 

Pennsylvania 104 

Rhode Island 21 

All others 214 

The rapid growth of worsted manufacture is shown in this 
table, also reproduced from the census contained in the 
Tariff Board Reports. Note the tremendous increases all 
along the line during a period of 50 years. 



Cost of 


Product 


materials 


value 


(millions) 


(millions) 


$65.6 


$107.1 


5.1 


8.4 


7.6 


12.8 


19.8 


32.2 


4.7 


7.7 


2.9 


4.9 


10.2 


16.0 


2.9 


4.7 


12.1 


20.1 





1909 1904 1899 


1889 1879 1869 1859 


Number of es- 






tablishments 


324 226 186 


143 76 102 3 


Capital (mil- 






lions) 


$295 $162.4 $132.1 


$68 $20.3 $10 $3.2 


Combing ma- 






chines 






(number) . . 


1,925 1,312 1,194 


673 288 161 ... . 


Spindles 






(thousands; 


2,624 1,618 1,371 


755 240 200.... 


Looms (num- 






ber) 


45,270 30,910 26,372 1,909 5,144 116,128. . . . 



12 GRAPHIC SALES ANALYSIS 

1909 1904 1899 1889 1879 1869 1859 

Value of ma- 
terials (mil- 
lions) $207.7 $109.6 $77 $50.7 $22 $14.3 $2.4 

Value of pro- 
duct (mil- 
lions) $312.6 $165.7 $120.3 $79.1 $33.5 $22 $3.7 

How worsted establishments are concentrated by states is 
fihown here. Comparison of this table with that on page 9, 
shows that worsted manufacture is confined to a few states 
to a greater extent than is ordinary woolen manufacture. 
Three cities alone — Lawrence (Massachusetts), Providence, 
and Philadelphia — produce the greater part of the output. 



United States 


Number 
of estab- 
lishments 
324 


Cost of 
materials 
(millions) 
$207.7 
7.1 
66.0 
18.3 
8.2 
43.3 
48.1 
16.5 


Product 

value 

(millions) 

$312 6 


Coimecticut 

Massachusetts 

New Jersey 


17 

74 

21 


10.1 

106.0 

29 6 


New York 


15 


12.7 


Pennsylvania 

Rhode Island 


99 

67 


59.4 
69.8 


All others 


31 


24.6 



The total amount of fine wool retained in the United 
States for consumption during the 10 years ending with 
the first of the year 1915, and the percentage of these 
totals represented by imported wools, is given in this table 
prepared by the National Association of Wool Manufacturers. 

FINE WOOL 

Retained for Percentage 

Fiscal consumption of 

year (million pounds) imports 

1904-05 426 31.54 

1905-06 393 24.99 

1906-07 390 23.50 

1907-08 346 16.71 



PRODUCTION DATA AND FIGURES 13 

FINE WOOL, Continued 

Retained for Percentage 

Fiscal consumption of 

year (million pounds) imports 

1908-09 476 34.60 

1909-10 467 29.90 

1910-11 366 12.38 

1911-12 404 21.02 

1912-13 384 21.00 

1913-14 441 32.84 

1914-15 526 44.91 

Examination of this table makes clear the connection 
between the scale of operation and the nature of the two 
great groups of products, staples, and novelties. For example, 
by comparing the yardage of worsted serges and the other 
chief worsted items with the yardage of woolens having the 
largest totals, and by observing how many more groups of 
products are necessary for listing woolen mill products than 
worsteds, it is easier to understand why large-volume plants 
have so much more important a place in the worsted than 
in the woolen industry. 

Woolen Industry Worsted Industry 
Items Sq. yds. Value Sq. yds. Value 

(millions) (millions) (millions) (millions) 
All wool: 

Wool cloth and 

men's wear... 35.1 $24.5 5.7 $4.7 

Worsted coat- 
ings, serges, 
and suitings, 

men'swear... 5.0 4.3 114.5 97.5 

Woolen over- 
coatings, cloak- 
ings, and so on, 
men's or 

women's wear.. 13.6 10.2 1.0 1.0 

Worsted overcoat- 
ings and cloakings, 
men's or women's 
wear 1 .2 .4 .5 



14 



GRAPHIC SALES ANALYSIS 



Woolen Industry Worsted Industry 
Items, Sq. yds. Value Sq. yds. Value 

continued (millions) (millions) (millions) (millions) 

Wool dress goods 
and so on, opera 
and similar flan- 
nels and similar 
all wool dress 

goods 25.5 13.7 3.5 2.6 

Worsted dress 
goods, cashmeres, 
and so on, for 
women's wear and 

buntings 1.9 1.1 103.8 52.0 

Carriage cloths. ... 1.2 .6 

Flannels for under- 
wear 3.3 .9 

Blankets 4.4 2.5 ^.. . 

Mohair dress goods .... .3 .1 

All other all wool.. .9 .5 1.8 1.3 

Cotton mixed 

woven goods: 

Cotton mixed 

woven goods, 

total all types 8.6 1.6 

Union tweeds, 
cassimeres, 
cheviots, etc., 
for men's wear . 15.3 6.2 .... .... 

Overcoatings and 

cloakings 4.2 2.3 .... 

Sacking, tricots, 
dress goods for 
women's wear, and 
opera and similar 

flannels 4.2 1.7 .... ,... 

Flannels for under- 
wear 7.0 1.3 

Blankets 1.7 .6 

All other woolen 
mill products — 
cotton mixed 
woven goods 1.1 .4 .... 



INSERT I 



•>j'^! a^ ]• A WIS. w r^» • 



<^ 



• tlM>§i S.D, 
!UIM| NEB 

• r • 

COLO.! KANS. 




MICH. 



NEW YORK 



ME. 

• i • • 

1 MASS. 



• • 



' . 1 R.I. 1 



• >• • 



ILL.S I IND. 



^A^Ll^UjN.] • MO. < • \ ^^ 

• \ iK.' OKLA. I . , \ J JZ 



\m\ OKLA. 




OHIO • 












PENN. 



ARK. / • 



KY. 
• TENN. 



W.VA. 



>m"r 



.-/^ 



N.J. 



v"v;"y. 



VA. 



)d.c.\ 



iDEl\ 



N.C 



• \ / MISS. / ALA. 



LA.- I • 



o%.-^-i^ 



GA. 



S.C 



Massachusetts and Texas, or New Jersey and Montana, for 
examples, on a population basis, presents some decidedly inter - 



Insert I: Whether or not the distribution of your product is certain parts of the country appear more favored than others. 

based on density of population, you will find this map interest- This map forestalls that objection. It shows how the United .. , , o h. vw c=i., „nl„me against 

n. Each dot represents 500,000 people. An ordinary map- States would look if the states corresponded in si^e to their estmg and surpr.s.ng facts. ^^^^^^ ^^^l^^loZXl 

and-tack distribution sometimes is confusing, as it may make populations A comparison of the "si^e" of states such as th.s map, you can tell .f your d.str.but.on .s what .t should be. 



14 



II 

con 

Wo. 

an 

an 

ne 

al 

go 

Wc 

go 

a£ 

wc 

bu 

Cai 

Fla 

W( 

Bla 
Mc 
AU 
Co 



Ov 

cl 

Sa 

d 

w 

Fh 

Bli 
Al 

n 

c 



PRODUCTION DATA AND FIGURES 15 

Woolen Industry Worsted Industry 
Items, Sq. yds. Value Sq. yds. Value 

continued (millions) (millions) (millions) (millions) 

Cotton warp 

woven goods: 

Wool filled cassi- 

meres, doeskins, 

jeans, tweeds, 

and so on, for 

men's wear 44.0 11.0 1.1 ,8 

Worsted filled 
cassimeres, doe- 
skins, jeans, 
tweeds, etc., for 

men's wear 3.3 1.2 25.9 13.7 

Wool filled dress 
goods and similar 
goods and repel- 

lants 12.2 2.5 ..,« «.... 

Wool filled over- 
coatingsand cloak- 

ings.., 1.9 3.9 •«., ^.. 

Worsted filled dress 
goods, delaines, 
cashmeres, and so 
on, and stuffs for 

women's wear .... 64.4 14.6 

Domett flannels 
and shirtings .... 4.5 .9 .... .... 

Cotton warp blan- 
kets 8.9 2.5 

Horse blankets 4.1 1.6 .... 

Carriage robes .... 2.8 1.3 .... .... 

All other cotton 
warp goods 8.1 1.3 1.9 .7 

Only four cities in the United States are prominent in 
woolen manufacture. A count of firms indicated as handling 
woolen or worsted goods, classified somewhat roughly, gives 
figures as shown in the table given on the following page. 
The total value of products in 1905 was $355,000,000, and 
in 1910, $485,000,000. 



16 GRAPHIC SALES ANALYSIS 



WOOLEN MANUFACTURERS 



03 



^ g ^ I 

Type of Concern ^ ^ ^ « 

^ M Oh O 

Woolens and worsteds alone 179 29 14 3 

Woolens and worsteds combined with 

other lines 39 8 3 5 

Sales offices of woolen and worsted 

mills 5 4 3 6 

Branches of houses whose head offices 

are elsewhere 14 2 2 

Head offices of houses with branches 

in various cities 3 4 

Houses handling both imported and 

domestic woolens and worsteds .... 14 



A direct count of concerns manufacturing men's ready-to- 
wear woolen and worsted clothing, shows the following dis- 
tribution. You will note that certain localities have special- 
ized in certain types of products. 

MEN^S CLOTHING MANUFACTURERS 

o 
•S .2 

d OQ 

Type of Product '^ I I | "g I | 1 | "^ -S 

zQ m 

Men's clothing 236 60 42 32 .. 12 11 34 24 8 5 

Overcoats and rain- 
coats 20 1 1 .. .. 

Men's and boys' wear 13 6 10 . . 3 . . . . 4 

Clothing and raincoats 10 5 3 . . 1 ..... . 

Clothing and overcoats 20 14 ... . 1 3 3 

Boys' clothing 127 10 7 4 11 

Pants 97 17 22 4.... 7 19 110 14 

Knee pants 32 . . . . 2 2 

Pants and knee pants. 5 2 .. 



1 

1 


•I 


i 

•43 


1 


rooklyn 
inciTinfl.ti 


1 
1 




o 


^ 


u 


PQ 


pq 


PQ O 


O 


P^ 


« 



PRODUCTION DATA AND FIGURES 17 

These cost figures for the manufacture of clothing in 1910 
show separately the cost of cloth and the cost of trimming. 
The prices given in the top line are average selling prices. 
Note that high-grade clothing — selling for $15 and up — is 
divided into two classes, A and B, distinguished not so much 
by selling prices as by the relative emphasis on cloth and 
material cost in class A, as against the emphasis placed on 
workmanship and the consequent labor cost of manufactur- 
ing clothing in class B. 

High Grade 
Cheap Medium ($15 and over) 
($8 and ($8 to Class Class Chil- Special 
Items under) $15) A B dren order Average 

Net sales 100.0 100.0 100.0 100.0 100.0 100.0 100.0 

Material cost: 

Cloth 47.1 36.8 34.1 26.6 35.0 33.2 35.4 

Trimmings.. 13.7 17.1 18.4 15.8 17.1 9.8 16.6 

Freight .2 .3 .1 .1 .2 

Total.... 60.8 53.9 52.7 42.7 52.2 43.1 52.2 
Manufactur- 
ing cost: 

Direct labor 21.0 23.2 23.4 28.5 25.7 25.8 23.8 
Factory exp. 1.2 3.3 4.8 5.0 2.9 4.1 4.0 
Totalmfg.exp22.2 26.5 28.2 33.5 28.6 29.9 27.8 
Total cost of 
mnfd. 

clothing.. 83.0 80.4 80.9 76.2 80.8 73.0 80.0 
General over- 
head exp.: 
Sellingexp.. 3.9 6.8 6.3 8.7 7.8 15.6 7.0 
General exp. 3.0 3.9 3.7 3.2 5.2 8.6 4.0 
Total.... 6.9 10.7 10.0 11.9 13.0 24.2 11.0 

Total Cost.... 89.9 91.1 90.9 88.1 93.8 97.2 91.0 
Profit 10.1 8.9 9.1 11.9 6.2 2.8 9.0 

A trade directory gives the following figures covering con- 
cerns producing women's woolen and worsted clothing. As 
in the men's ready-to-wear clothing industry the contract 
system figures largely, and manufacture is generally concen- 
trated in large eastern cities. 



18 GRAPHIC SALES ANALYSIS 



WOMEN'S CLOTHING MANUFACTURERS 

o 

Type of Product >^ || gsj-lll I 






Suits and cloaks 643 50 17 42 1 13 24 76 5 9 

Skirts (woolen) 153 33 15 23 . . . . 27 20 4 17 

Children's cloaks and 

suits 157 1 .. .. 15 .. .. 

Auto coats and rain 

coats 51 . . 2 



The figures presented in the following tables are intended 
to give you an idea of the amount of raw materials used in 
the manufacture of essential products. These statistics were 
compiled by the United States Bureau of the Census. In 
some instances where actual consumption figures were not 
available, the production figures are given. These figures, 
of course, do not include any wastage which occurs in the 
manufacturing process. 

COTTON INDUSTRY 

(Cotton goods, including cotton small wares) 

Material Pounds 

Cotton 2,335,344,906 

Domestic 2,259,312,974 

Foreign 76,031,932 

Cotton yarn 126,707,003 

Cotton waste 80,044,061 

Starch 71,774,574 

HOSIERY AND KNIT GOODS INDUSTRY 
Material Pounds 

Cotton 75,416,023 

Wool, in condition purchased 7,068,788 

Equivalent of above in scoured condition 5,582,839 



PRODUCTION DATA AND FIGURES 19 

HOSIERY AND KNIT GOODS INDUSTRY 
(Continued) 
Material Pounds 

Shoddy, purchased 7,482,553 

Wool waste and noils, purchased 8,586,261 

Yarns, purchased: 

Cotton 216,987,611 

Worsted 10,370,004 

Woc^n 6,140,26^ 

Merino 4,014,609 

Silk and spun silk 982,753 

Yams made in the establishment using — 

Cotton 69,171,277 

Woolen 8,316,349 

Worsted 223,404 

Merino 20,856,989 



WOOLEN INDUSTRY 
(Exclusive of carpets and rugs) 
Material Pounds 

Wool, in condition purchased 488,368,690 

Domestic 320,298,916 

Foreign 168,069,774 

Equivalent in scoured condition 301,004,252 

Hair 33,447,534 

Camel, alpaca, and vicuna 4,659,409 

Mohair 3,187,950 

Domestic 2,444,561 

Foreign (Turkish and so on) 743,389 

Other animal hair 25,600,175 

Cotton 21,399,731 

Domestic 18,412,493 

Foreign (Egyptian, and so on) 2,987,238 

Tailors* clippings (rags, and so on) 41,517,552 

Shoddy, mungo and wool extract, purchased 24,052,730 

Waste and noils of wool, mohair, camel hair, and 

so on, purchased 32,629,812 

Wool waste and noils 31,957,327 

Mohair noils 604,985 

Camel, alpaca, and vicuna noils 67,500 



^1 GRAPHIC SALES ANALYSIS 

SILK INDUSTRY 
Material 

Silks: Pounds 

Raw 17,472,204 

Spun 2,112,972 

Artificial 914,494 

Organzine and tram, purchased 3,377,972 

Fringe and floss, including waste, noils, and 
so on purchased 2,402,960 

Yarns, other than silk: 

Cotton (not including mercerized) 12,617,292 

Mercerized cotton 1,494,586 

Woolen or worsted 610,588 

Mohair 710,108 

All other 353,780 

IRON AND STEEL INDUSTRY 
(Steel Works and Rolling Mills) 
Material Tons 

Iron and steel: 

For furnaces and hot rolls — 

Pig iron, including ferroalloys 19,076,889 

Pig iron 18,712,304 

Ferroalloys — spiegeleisen, ferromanga- 

nese, and so on 364,585 

Scrap from outside sources, including old rails 

not intended for rerolling 4,803,617 

Ingots, blooms, billets, slabs, and muck scrap 
bar, rails for reroUing, and sheet and tin 

plate bars (from outside sources) 6,508,249 

Rolled forms for further manufacture (from 
outside sources) — 

Skelp 176,717 

Wire rods 146,425 

Iron ore 835,338 

AGRICULTURAL IMPLEMENT INDUSTRY 
Product Number Produced 

Cultivators 908,297 

Harrows 700,820 

Plows 1,615,852 

Seeders 61,970 



MANUFACTURE OF AGRICULTURAL IMPLEMENTS 




|»4.»M,M9 (190* 
8^7^14 
5377,079 

. a 4AS1.1W 

i Aabun, N. T 1.890,301 

• Sa Bent ted. 2,744,001 

f Paarte,ra. l.io9.9« 

^ lUehmood Uxi S,1S\161 

9 UudSTaie, Ky. 1,»7.38S (1900) 



Figure 9: This map from "Selling Forces" shows how the manufac- 
ture of agricultural implements is distributed. It is interesting to note 
the ccmcentration of over 70% of this industry in and around Chicago. 



^.^Owermnent Map 5howin<j Rrcenta^e of Increase jn Population Dunn() 10 Years | 


/--r^r«)4ffo 


Mont. 

1 WYO. 




^ 







Ical\ ^= 


^ 




w 


^l^^iz. , 


1 «,^. ' 


liiiL^^^ llilli^^^^^^^^^^ 


INa?F.ASE\_J 
^ Under lo% 
^ 10% to 20% 
m 20% to 307. 
^30%to'50% 
□ so^ahdover 


-1| 




r 




1 



Figure 10: This Government map shows the approximate percentage 
of increase of population by states, in a recent period. Information of 
this sort is valuable when setting quotas, routing salesmen, and so on. 

21 




Figure 1 1 : Here is a record used by one concern to control produc- 
tion costs. The division reproduced above shows the total cost of 
fuel for two consecutive years, and the lower one the unit cost. Similar 
divisions show all the other items that enter into production costs. 

22 



PRODUCTION DATA AND FIGURES 23 

AGRICULTURAL IMPLEMENT INDUSTRY, continued 
Product Number Produced 

Planters 368,448 

Drills 142,547 

Harvesting implements 1,059,763 

Seed separators 85,321 

Threshers 24,408 

SLAUGHTERING AND MEAT PACKING INDUSTRY 

Number 

Beeves 13,611,422 

Calves 6,515,976 

Sheep and lambs 14,724,699 

Hogs .53,219,568 

All others 287,150 

Total for the United States 88,358,815 

BUTTER, CHEESE, AND CONDENSED MILK INDUSTRY 

Pounds 

Butter 624,764,653 

Cheese 311,126,317 

Condensed milk 494,796,544 

SUGAR Tons 

Cane (crushed) 4,520,419 

Grown on plantations controlled by mill-owners .... 2,613,468 

Purchased 1,906,951 

Total 9,040,838 

Beets treated 3,965,356 

FLOUR AND GRIST MILL INDUSTRY 
Material Total Production 

Wheat flour .bbls. 107,108,461 

Corn meal and corn flour bbls. 27,188,352 

Rye bbls. 1,591,726 

Buckwheat' lbs. 200,959,917 

Barley meal .lbs. 33,649,182 

Hominy and grits lbs. 837,333,466 

Feed tons 6,001,357 

Offal tons 4,175,173 



24 GRAPHIC SALES ANALYSIS 

GRAIN (Ground) 
Material Bushels 

Wheat 503,468,556 

Com 244,547,967 

Rye 13,374,095 

Buckwheat 8,394,120 

Barley 30,639,401 

Oats 63,301,092 

Other grains 9,225,512 

Total 872,950,743 



LUMBER INDUSTRY 
Rough lumber: Quantity 

Total (M feet board measure) 44,509,761 

Softwoods 33,896,959 

Yellow pine 16,277,185 

Western pine 1,499,985 

White pine 3,900,034 

Douglas fir 4,856,378 

Hemlock 3,051,399 

Spruce 1,748,547 

Cypress 955,635 

Redwood. 521,630 

Cedar 346,008 

All other 740,158 

Hardwoods 10,612,802 

Oak 4,414,457 

Maple 1,106,604 

Red gum 706,945 

Chestnut 663,891 

Birch 452,370 

Basswood 399,151 

Ehn 347,456 

Cottonwood 265,600 

Ash 291,209 

Hickory 333,929 

Wahiut 46,108 

Sycamore 56,511 

All other 1,528,571 

Lath (thousands) 3,703,195 

Shingles (thousands) 14,907,371 



PRODUCTION DATA AND FIGURES 25 

DYESTUFFS AND EXTRACTS 

Product Pounds 

Artificial dyestuffs 12,267,399 

Extracts : 

Hemlock 12,588,078 

Logwood 22,317,248 

Oak and chestnut 287,908,285 

Sumac 3,148,790 

Ground sumac 554,032 

Ground bark 25,142,076 

Ground and chipped wood 15,046,954 

Gums and dextrines 16,148,931 

Iron liquors 3,079,418 

Mordants 1,735,887 

Sizes 54,054,711 

Tannic acid 5,085,748 

Turkey-red oil 1,048,719 

Chrome tannage solution 7,361,008 

Other tanning Hquors. 2,464,040 

PAINT AND VARNISH INDUSTRY 

Product Pounds 

White lead 85,234,414 

Oxides of lead 63,404,846 

Lampblack 1,810,445 

Iron oxides, and other earth colors 111,674,675 

Other dry colors 162,409,565 

Barytes 49,496,025 

Pulp colors (sold moist) 28,435,722 

White lead in oil 246,567,570 

Paste 162,356,330 

Mixed for use 33,272,033 

Oleoresinous varnishes 18,476,523 

Dammar and similar turpentine and benzine 

varnishes 3,481,231 

Spirit varnishes, other than turpentine 1,181,746 

Pyroxyhn varnishes 1,880,141 

Dryers, japans, and lacquers 9,474,939 

AU other 4,238,097 

Liquid fillers 1,159,569 

Paste 14,050,329 

Dry 50,983,472 

Putty 63,502,048 



26 GRAPHIC SALES ANALYSIS 

Product, continued Pounds 

Water paints and calcimine (dry and paste) . . . 47,465,265 

Mixed for use 522,283 

Linseed oil 3,477,004 

Bleached shellac 3,014,195 

Total 1,167,668,467 

PETROLEUM REFINING 
Product Barrels 

Mid-continent (Kansas and Oklahoma) 42,895,051 

Illinois 26,236,883 

Appalachian 24,508,218 

California 13,481,885 

Lima-Indiana 8,083,096 

Gulf (Texas and Louisiana) 5,262,664 

Colorado 307,642 

Crude petroleum, total 120,775,439 

BOOT AND SHOE INDUSTRY 
(Production of boots and shoes for leading states) 

State Number of pairs 

Massachusetts. . 118,009,926 

New York 28,538,451 

Missouri 25,931,107 

New Hampshire 25,534,114 

Ohio 18,908,915 

Pennsylvania 17,588,474 

Maine 9,275,102 

lUinois 8,295,805 

Wisconsin 7,296,629 

New Jersey 6,154,954 

Virginia 4,255,236 

Minnesota 3,195,530 

Michigan 2,986,002 

All other states 9,046,936 

Total, United States 285,017,181 

LEATHER INDUSTRY 
Product Number 

Cattle hides 18,360,415 

Skins 97,680,571 



INSERT II 



^ 



Distribution and Production Centers of the United States 



Morv^ 



o/?£ 



'Oaftc 






—i 



^C-AK 



(Oak. 



'vv'C- 



Wvo 



^E\ 



.^ NEBR. 



<^Al 



j ^^AH i 



I COLO. 



m 



'0' 



1 OHIO J'_- 



/■■^---^ / 



^f?;2 



Kan, 



d) 



MEx j 



OKLA. 



h— - 



TENN. 



n CAR 



S CAR. 



TEXAS 



"§'. 



GENERAL 

1. Population center of 
the United States. 

2. Farm center of ttie 
United States. 

3. Lead and zinc center. 

4. Cotton center 

5. Copper center. 

6. Sheep and wool center, 



7. Wheat center. 

8. Cattle center. 

9. Hog center. 

10. Corn center. 

11. Oat center. 

12. Rice center. 

13. Fruit center. 

14. Naval stores. 

15. Coal center. 

16. Iron center. 



MANUFACTURE 

Printing and publishing; men's clothing; tobacco; bread and 
other bakery products; women's clothing— New York City. 
Slaughtering and meat packing— Jobbing Center of the United 
States— Chicago. 

Foundry and machine shop; iron and steel works and rolling 
mills; blast furnaces— Pittsburgh. 
Lumber and timber — Washington State. 
Flour— Minneapolis. 



F Cotton goods— Fall River; jewelry— Providence. 

G Boots and shoes; woolen, worsted and felt goods-Massachusetts.. 

H Car shops— Berwick, Pa. 

J Manufacturing center of the United States. 

K Breweries — St. Louis. 

L Carriages and wagons — South Bend. 

M Furniture— Grand Rapids. 

N Silk- Paterson. 



Insert II: The map reproduced here shows how the 
vanous leading industries and trades are localized in 
certain sections of the country. The 16 principal pro- 
duction centers in the United States are indicated by the 



numerals 1, 2, 3, and so on; and the 13 principal pro- 
duction and distribution centers are designated alpha- 
betically. The key giveat below the map explains just 
which industry is the leading one in the various dis- 



tricts. Information of this nature is not merely interest- 
ing to know, but it can be made of valuable and direct 
assistance to manufacturers and wholesalers in locating 
the most profitable markets for their various products. 



PRODUCTION DATA AND FIGURES 27 

Product, continued Number 

Calf and kid 19,732,638 

Goat dozens 4,006,472 

Sheep dozens 2,173,505 

AU other 3,788,209 

Rough leather purchased : 

Whole sides 1,468,213 

Grains, sides 525,786 

AUTOMOBILE INDUSTRY 
Class and State Number 

All classes 126,593 

Pleasure and family vehicles . 121,868 

Touring cars 76,114 

Connecticut 2,165 

liMnois 2,059 

Indiana 6,838 

Massachusetts 2,063 

Michigan 43,855 

New York 5,440 

Ohio 6,479 

Runabouts 36,204 

Connecticut 393 

Illinois 433 

Indiana 8,139 

Massachusetts 983 

Michigan 18,173 

New York 1,097 

Ohio 2,900 

All other varieties 9,550 

Illinois 470 

Indiana 2,104 

Michigan 1,855 

New York 507 

Ohio 4,114 

Pennsylvania 67 

Business vehicles 4,725 

DeHvery wagons 1,862 

Illinois 447 

Indiana 107 

Michigan .*.... 401 

New York 139 



^ GRAPHIC SALES ANALYSIS 

Class and State, continued Number 

Ohio 469 

Pennsylvania 242 

Trucks 1,366 

Illinois 28 

Indiana 43 

Michigan 372 

New York 475 

Ohio 202 

All other varieties 1,497 

Connecticut 119 

Indiana 22 

Massachusetts 280 

Michigan 144 

New York 406 

Ohio 135 

Pennsylvania 127 

PAPER AND WOOD PULP INDUSTRY 
Material Tons 

Newspaper 606,342 

Book paper 293,523 

Cardboard 22,955 

Fine paper 85,506 

Wrapping paper 174,104 

Boards 83,591 

Tissues 49,339 

Blotting 5,226 

Building 12^,909 

Hanging papers 37,828 

Total 1,487,323 

Wood pulp, purchased 1,241,914 

Ground 452,849 

Soda fiber 154,626 

Sulphite fiber 626,029 

Other chemical fiber 8,410 

Rags, including cotton and flax waste and sweeping 357,470 

Old or waste paper 983,882 

Manila stock, including jute bagging, rope, waste, 

threads, and so on 117,080 

Straw 303,137 



PRODUCTION DATA AND FIGURES 29 

TOTAL NUMBER OF MANUFACTURERS IN ALL 
LINES IN EACH STATE 

States Manufacturers 

New York 19,070 

Pennsylvania 18,639 

Ohio 10,555 

IlKnois 9,144 

Massachusetts ; 7,845 

New Jersey 5,781 

Indiana 5,661 

Michigan 5,516 

Missouri 4,829 

Wisconsin 4,242 

California 3,553 

Connecticut 3,022 

Minnesota 2,919 

Iowa 2,466 

Maryland 2,332 

Kentucky 2,080 

Texas 2,061 

Tennessee 1,942 

Virginia 1,867 

North Carolina. 1,859 

Georgia 1,842 

Louisiana. 1,830 

Maine 1,560 

Kansas 1,501 

Rhode Islapd 1,428 

Oklahoma 1,411 

Washington 1,271 

Nebraska 1,267 

New Hampshire 1,238 

Colorado. 1,129 

Arkansas . 1,018 

Vermont. 916 

West Virginia 911 

Oregon 848 

South Carolina 845 

Mississippi 833 

Alabama . 702 

Florida 701 

South Dakota 526 

North Dakota 511 



30 GRAPHIC SALES ANALYSIS 

TOTAL NUMBER OF MANUFACTURERS IN ALL 
LINES IN EACH STATE, continued 

States Manufacturers 

Delaware 492 

District of Columbia 292 

Utah 272 

Idaho 244 

Montana 228 

Nevada 61 

New Mexico 59 

Arizona 55 

Wyoming. .^ 37 

Total 139,411 

To find the number of people in the country in proportion 
to your factory — that is, the average number of persons your 
factory serves — look under the "per capita ratio" column 
opposite the industry in which you are engaged. For 
example, the average boot and shoe factory serves 72,325 
people. This figure, together with the others listed in the 
following table, are based on an estimated total population 
in the United States of 98,000,000. 



PART II 

COMPARATIVE DATA AND 
FIGURES FROM WHOLE- 
SALE LINES 



PART II 

COMPARATIVE DATA AND FIGURES 
FROM WHOLESALE LINES 

THOROUGH knowledge of what it costs whole- 
salers to do business cannot come in amiss for any 
distributor. You will find much of interest in 
the tables in the follovfing pages, covering most of the 
lines of business in which wholesalers are necessary to 
most effective distribution. 

Some sets of figures, obtained from various sources, 
are of general interest to business men who are on the 
lookout for larger business tendencies and develop- 
ments. Others of the tables bring to light facts per- 
taining more especially to certain lines of business. 
Both kinds are important, you will agree, to effective 
planning for the future. Today, more than ever before, 
sellers of goods are looking ahead. The correct solution 
of present-day problems is just as vital as before; but 
so great and so far-reaching are the changes of to- 
morrow likely to be, that it is an imperative task of 
sales management as far as possible to gage and an- 
ticipate future business conditions. 

As a fact, it is vital that every wholesaler know not 
only what his selling possibilities are, but what his 
costs in every detail ought to be. Progressive men 
are looking into this question of costs in the light of 
future conditions. But first, they necessarily have 
their ''house in order." They know to a certainty 
what it is costing them to get business in their entire 
selling field, what they are paying to pack, ship, and 
distribute goods to cover present sales. 

33 



34 GRAPHIC SALES ANALYSIS 

The international scope business is reaching today 
calls for an analysis of wholesaling such as has never 
before been attempted. What are your expenses? What 
are they in proportion to your sales? Percentages of 
this sort are important. They point the way to busi- 
ness success or failure. In these pages are figm-es 
and percentages of this type for various lines of trade. 
A glance through the pages should tend to crystallize 
for wholesalers much extremely valuable cost and sell- 
ing information. 

For instance, if you want to know how much con- 
cerns are paying for rent in proportion to sales, you'll 
find the figures here. In fact, wherever business men 
are faced with present-day problems in selling, these 
figures will help in the solution. 



WHOLESALE DATA AND FIGURES 

Did you ever wonder how many wholesalers there are in 
the United States? These figures will give you some idea as 
to the number and show in what lines they are engaged, too. 
Produce takes the lead with 7,785. The smallest number of 
dealers listed are the sponge wholesalers, who number but 37. 
In checking up on these figures it will be interesting as well 
as helpful to compare them with similar tabulations given 
in the manufacturing and the retail sections of this volume. 

WHOLESALE DEALERS IN THE UNITED STATES 
(From R. G. Dun and Company's list as compiled 
by the Rapid Addressing Machine Company) 
Line Number 

Agricultural implements 240 

Bakers 620 

Boots and shoes 522 

Butchers and meat markets 781 

Butter and eggs 1,194 

Carpets 83 

Cheese 263 

China, crockery, and glassware 340 

Cigars and tobacco 1,991 

Clothing 160 

Coffee, tea, and spices 547 

Drugs 668 

Dry goods 725 

Electrical supplies 424 

Fancy goods and notions (exclusive) 786 

Feed, flour, and grain 1,572 

Fish 950 

Florists 1,765 

Fruit 1,831 

Furniture 307 

Glass, oils, and paint 605 

35 



36 GRAPHIC SALES ANALYSIS 

Line, continued Number 

Gloves 63 

Grain 1,210 

Grocers 3,840 

Hardware 928 

Harness and saddlery 314 

Hats and caps 201 

Honey 113 

Hosiery 1,105 

Jewelers 815 

Junk 189 

Men's furnishings (exclusive) , 315 

Milliners 424 

Neckwear 315 

Notions and toys 802 

Paper 905 

Produce 7,785 

Seed 597 

Sponges 37 

Sporting goods 423 

Stationery 391 

Tobacco (leaf) 592 

Wall paper 284 

Willow and woodenware 131 



RECAPITULATION OF WHOLESALE TRADE 

Towns 1,000 2,500 Over Total 

below to to 

1,000 2,499 24,999 25,000 

Wholesale grocers.. 107 250 1,369 1,261 2,987 
Wholesale dry 

goods 1 14 136 526 677 

Wholesale hardware 4 149 401 554 

Wholesale drugs... 6 16 189 432 643 

Wholesale jewehy.. 4 10 63 751 828 
Wholesale fancy 

goods and notions 5 3 37 3^2 407 
Wholesale boots 

and shoes 4 76 501 581 

Wholesale toys . . . . __0 _0 15 392 407 

Total 123 301 2,034 4,626 7,084 



Daily Sates Report of Use other sidt for retnaHa 
L%Jio^yrJjiA/ number ^0? Day ^O Date ^««y. 191 


Towns VsMed 


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For 

Imimdlatt 
thipment 


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future 
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On Spaca Below 


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Totafeles j S.S' o o . 










for the Oay * 



CotK tin attimato of yow ortfert In celamns beaded Immediate' and future Sblpmenf 



DaDyExpease Report of Man every day from town where >oa sleep 
fyn. Hu/rd£n/ .Number ^^^_Day )C> Data ''>^<^ 191 



il 



io order ttdoud 



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TOTAL 









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street car fare. 



Day's total expense 



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60 



Figiire 12: An accurate daily comparison of sales with expense for 
each salesman is made possible in one wholesale house by the use of 
this double card form (the halves can be torn apart). Almost any 
concern employing salesmen can use this form or an adaptation of it. 

37 



38 GRAPHIC SALES ANALYSIS 



LOCATION OF WHOLESALE TRADE 

DQ 

S 52 2 W)'-- - 



states I l-lS^Sb^Scn^^ 

Connecticut 43 11 5 9 10 2 8 4 

Maine 29 8 2 7 8 1 78 

Massachusetts 76 30 48 60 22 7 23 87 

New Hampshire 16 3 1 

Rhode Island 12 5 13 6 4 3 4 2 

Vermont 83112002 

New Jersey 49 3 4 9 11 12 7 

New York 196 38 223 112 112 70 77 68 

Ohio 123 27 67 51 37 44 33 23 

Pennsylvania 173 49 77 90 63 52 29 64 

Alabama 89 16 3 17 10 6 4 9 

Delaware 10 2111011 

Florida 76 6 15 6 6 2 1 1 

Georgia 190 15 5 35 21 4 6 19 

Kentucky .85 9 2 9 15 8 9 5 

District of Columbia.... 112424302 

Maryland 43 12 21 22 18 25 14 24 

Mississippi 70 7 2 16 9 5 

North CaroHna 205 10 16 24 5 1 12 

South Carolina 73 5379210 

Tennessee 93 22 6 25 19 14 19 25 

Virginia 126 30 2 15 14 10 6 24 

Wet Virginia 64 15 2 12 12 5 3 8 

Illinois 112 14 86 27 29 21 36 33 

Indiana 75 12 13 15 19 9 14 6 

Iowa ..44 23 20 20 7 7 14 

Michigan 71 16 20 28 16 13 II 10 

Minnesota 37 12 23 3 13 6 13 

Nebraska 24 8 22 6 2 4 2 

North Dakota 16 10 

South Dakota 12 3 2 2 

Wisconsin 35 9 14 17 6 5 31 

Arizona 14 3011010 

Arkansas 88 6 1 10 12 2 

Colorado 19 3 11 9 6 6 2 

Kansas ...43 9605223 



WHOLESALE DATA AND FIGURES 39 



LOCATION OF WHOLESALE TRADE, Continued 

■o g 2 § §)'5 § 

States S |-|'*a^§«?5 






a> 



5 ^^^-^^oog 



u 



Louisiana 71 8 8 18 11 8 9 

Missouri 82 18 43 14 10 13 25 

New Mexico 13 1000040 

Oklahoma 62 8342132 

Texas 198 30 7 33 20 4 14 8 

California 53 23 26 7 23 15 17 

Idaho 6 3 10 

Montana 11 6 1 7 1 2 

Nevada 41000000 

Oregon 07414222 

Utah 10 4 2 7 5 1 3 4 

Washington 20 9 11 3 2 4 6 3 

Wyoming 70000000 

Indicated typical and attainable cost-of-doing-business 
figures for wholesalers are presented in the following tables. 
The total figures shown here indicate apparently that whole- 
sale hardware concerns have the highest cost of doing busi- 
ness and that it costs wholesale grocers less than the other 
lines studied. It was apparent early in the nation-wide in- 
vestigation among wholesalers conducted during the prepara- 
atioii of this book that the volume of sales had a direct 
influence on the cost of doing business. For this reason the 
concerns were classified according to whether their sales 
were $1,000,000 or more, or from S500,000 to $1,000,000, or 
less than $500,000. It was also found that sectional influences 
affected costs. Firms doing business in the West and along 
the Atlantic seaboard were found to have higher costs than 
those in the Middle West. The western concerns' costs were 
from 1.5% to 2% higher, while many eastern concerns 
reported costs about 1% higher than the average for the 
Middle West. Wholesalers in the South, it was found, usually 
had a somewhat lower cost of doing business. 



40 



GRAPHIC SALES ANALYSIS 



COSTS OF DOING BUSINESS FOR WHOLESALERS 

(Annual sales more than $1,000,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 10.3% 8.8% 

Clothing 17.8% 15.6% 

Hardware 23.5% 18.8% 

Electrical goods 18. 1% 15.7% 

Shoes 15.8% ll.^o 

Drugs 14.6% 12.4% 

Dry goods 12.8% 10.6% 

(Annual sales $500,000 to $1,000,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 9.0% 7.5% 

Clothing 16.1% 12.8% 

Hardware 19.2% 16.7% 

Electrical goods 18.1% 15.7% 

Dry goods 12.8% 10.6%) 

(Annual sales less than $500,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 7.2% 6.3% 

Hardware 17.8% 14.9% 

Electrical goods 17.0% 13.3% 



Itemized costs of doing business in the following tables 
are indicative, but are not advanced as final. ''Selling 
expense" includes all salesmen's salaries, traveling expenses, 
and commissions. "Administrative salaries and wages'* in- 
cludes all other expenses for salaries and wages* Under 
"office expense" are grouped expenses for stationery, post- 
age, printing, and supplies. Cost on interest, depreciation, 
and repairs are mcluded under "general expense.*' All figures 



WHOLESALE DATA AND FIGURES 41 

refer to total gross sales. It may appear to many that the 
wholesaler's distribution task is far simpler than the manu- 
facturer's, and no doubt it is in many instances. It is 
worth remembering, however, that many trade barriers, 
long thought insurmountable, are rapidly being broken 
down. The wholesale hardware man is nothing loath to 
sell to grocers if he has stock they want, and so it is with 
other hues. Each year, it seems, a wholesaler finds certain 
limitations abolished which formerly were arbitrarily set 
upon his selling activities. 

WHOLESALE SHOE COSTS 
(Annual sales more than $1,000,000) 

Here are the itemized costs of doing business for shoe 
wholesalers throughout the United States, as indicated by 
investigation. Note that warehouse, freight, and packing 
expense are extremely heavy in this line, due, perhaps to 
the fact that shoes are bulky and usually each pair requires 
a separate box in packing. 

1. Selling expense . 4 . 9% 

2. Administrative salaries and wages 3 . 2% 

3. Rent 0.6% 

4. Light, heat, and power 0.2% 

5. Warehouse, freight, and packing 1 . 1% 

6. Insurance and taxes 0.6% 

7. Official expense 0.5% 

8. Bad accounts 1 . 6% 

9. Advertising 0.4% 

10. General expense 2.7% 

Total costs 15.8% 

A TYPICAL SHOE HOUSE 
(Annual sales $1,450,700) 

Expressed in dollars and cents the table which appears on 
the following page gives the total cost of doing business for 
an average wholesale shoe house with sales over the milUon 
mark. Note again the high warehouse, freight, and packing 
expense. Loss from bad accounts also is indicated to be a 
heavy item of expense in this line. 



42 GRAPHIC SALES ANALYSIS 

1. Selling expense $ 65,281.50 or 4.5% 

2. Administrative salaries and wages 37,717.50 or 2 . 6% 

3. Rent 5,802.80 or 0.4% 

4. Light, heat, and power 1,405.00 or 0.1% 

5. Warehouse, freight, and packing. 17,402.40 or 1.2% 

6. Insurance and taxes 5,802.80 or 0.4% 

7. Office expense 5,802.80 or 0.4% 

8. Bad accounts 26,107.00 or 1.8% 

9. Advertising 5,802.80 or 0.4% 

10. General expense 37,717.50 or 2.6% 

Total costs $208,842.10 or 14.4% 

This table, prepared by the Harvard Bureau of Business 
Research, should prove valuable in analyzing the wholesale 
grocer's cost of doing business. Low, high, and common 
standards of costs are given, and a glance will show the 
wholesaler how he stands in comparison with the average. 

WHOLESALE GROCERY COSTS 
(Percentages based on net sales) 

Items Low High Common 

Gross profit 7.70% 17.20% 12.00% 

Total sales force expense . . . 93% 4 . 30% 2 . 30% 

Advertising 0.00% 1.19% 0.07%, 

Other selUng expense . 01% . 45% . 06% 

Total selHng expense..... . 1.20% 4.53% 2.50% 

Salaries and wages of receiv- 
ing, warehouse, and ship- 
ping force 0.43% 2.00% 1.15% 

Packing cases and wrap- 
pings 0.01% 0.73% 0.04% 

Outward freight, express, 
parcel-postage, and cart- 
age 0.01% 2.10% 0.40% 

Total receiving, handling, 

and shipping expense .... . 80% 3 . 22% 1.60% 

Salaries of bu>^g force. ... . 05% 1 . 05%, • 35%, 

Other buying expense . 02% . 26% . 03%, 

Total buying expense . 05%, 1 . 05%, . 40%, 

Executive salaries 0.16%, 1.21%, . 50%, 

Office salaries 0. 19%, 1 .54%, 0.70% 

Postage and office suppHes . 05% . 48%, . 23%, 



WHOLESALE DATA AND FIGURES 43 



Items, continued Low 

Telephone and telegraph ... 0.01% 

Credits and collections 0.01% 

Other management expense . 02% 
Total general management 

and office expense 1 . 15% 

Total interest 0.40% 

Rent 0.17% 

Heat, light, and power . . . 0.01% 

Taxes 0.02% 

Insm-ance (except on build- 
ings) 0.03% 

Repairs of equipment 0.01% 

Depreciation of equipment 0.001% 
Total fixed charges and up- 
keep expense 1 . 31% 

Miscellaneous expense. ... 0.01% 

Losses from bad debts .... . 002% 

Total expense 6.70% 

Net profit 1.13% 

Stock turn 2.80% 



WHOLESALE GROCERY COSTS 
(Annual sales $500,000 to $1,000,000) 

Analyses by the Shaw Bureau of Business Standards of 
the expenses of wholesale grocers scattered from coast to 
coast indicated these average costs of doing business. While 
these costs appear low when compared with those in some 
other of wholesale fines, investigation indicated that they, 
also, are steadily climbing. 

1. Selling expense 2.2% 

2. Administrative salaries and wages 2.2% 

3. Rent 0.6% 

4. Light, heat, and power 0.2% 

5. Warehouse, freight, and packing 0.5% 

6. Insurance and taxes 0.5% 

7. Office expense 0.3% 

8. Bad accounts 0.5% 

9. Advertising 0.4% 

10. General expense 1.6% 

Total costs 9.0% 



High 


Conmion 


0.25% 


0.05% 


0.57% 


0.06% 


0.42% 


0.10% 


3.15% 


1.65% 


3.03% 


1.50% 


1.05% 


0.40% 


0.2% 


0.05% 


0.75% 


0.20% 


0.58% 


0.11% 


0.49% 


0.05% 


0.5% 


0.10% 


4.62% 


2.50% 


0.92% 


0.11% 


1.66% 


0.30% 


13.74% 


9.50% 


7.01% 


2.40% 


11.60% 


5.70% 



44 GRAPHIC SALES ANALYSIS 

THE COST OF DOING BUSINESS OF A 

TYPICAL GROCERY HOUSE 

(Annual sales $500,000) 

Here, in this table of costs for one tj^pical wholesale gro- 
cery house, you will note expenses run close to the indicated 
average. ''General expense" which includes depreciation, 
repairs, and interest, apparently is an item which will stand 
considerable cutting in many houses. 

1. SeUing expense S 6,500.00 or 1.3% 

2. Administrative salaries and wages 12,500.00 or 2.5% 

3. Rent 5,500.00 or 1.1% 

4. Light, heat, and power 1,000.00 or . 2% 

5. Warehouse, freight, and packing. . 2,000.00 or 0.4% 

6. Insurance and taxes 3,000.00 or 0.6% 

7. Office expense 1,500.00 or 0.3% 

8. Bad accounts 2,500.00 or 0.5% 

9. Advertising 2,500.00 or 0.5% 

10. General expense 7,000.00 or 1.4% 

Total costs $44,000.00 or 8.8% 



WHOLESALE CLOTHING COSTS 
(Annual sales $500,000 to $1,000,000) 

This table shows average costs for clothing wholesalers as 
indicated by investigation. Note that rent is a heavy item. 
This, perhaps, is heavy because many clothing wholesalers 
are manufacturers as well, and need larger quarters than if 
engaged in wholesaling alone. Advertising expense, also, 
apparently is a heavy item. 

1. Selhng expense 5 . 5% 

2. Administrative salaries and wages 3 . 5% 

3. Rent 1.4% 

4. Light, heat, and power 0.3% 

5. Warehouse, freight, and packing 0.4% 

6. Insurance and taxes 0.4% 

7. Office expense . 5% 

8. Bad accounts 1 . 0% 

9. Advertising 2.0% 

10. General expense 1-1% 

Total costs 16.1% 




Figxire 13: Indicated typical total cost percentages from seven whole- 
sale lines for various size concerns are shown here in graphic form. The 
grocery, hardware, and clothing columns indicate, as you will note, 
how costs of doing business increase as a business increases in size. 

45 




Figure 14: These columns are the indicated attainable total cost 
percentages in seven wholesale lines, also given in graphic form. Com- 
parison of this chart with that shown in Figxire 13, brings out clearly 
what reduction of expense reasonably may be expected in these lines. 

46 



WHOLESALE DATA AND FIGURES 47 

A TYPICAL CLOTHING CONCERN'S 
COST OF DOING BUSINESS 
(Annual sales $837,500) 
In a typical wholesale clothing house with annual sales 
of $837,500, the cost of doing business is about as shown in 
this table. Clothing houses usually are comparatively heavy 
advertisers, as you will note. Advertising, however, ap- 
parently has a tendency to reduce selling expense in most 
lines, investigation indicates. 

1. Selling expense $ 46,899.50 or 5.6% 

2. Administrative salaries and wages 28,373.00 or 3.4% 

3. Rent 13,399,50 or 1.6% 

4. Light, heat, and power 1,674.00 or 0.2% 

5. Warehouse, freight, and packing. 837.00 or 0.1% 

6. Insurance and taxes 3,348.00 or 0.4% 

7. Office expense 4,187.50 or 0.5% 

8. Bad accounts 13,399.50 or 1.6% 

9. Advertising 20,937.50 or 2.5% 

10. General expense 7,538.00 or 0.9% 

Total costs $140,593.50 or 16.8% 

AVERAGE OPERATING COSTS OF WHOLESALE 

DRUG CONCERNS 

(Annual sales more than $1,000,000) 

Rent apparently is an extremely heavy item with drug 

wholesalers throughout the country, investigation indicates. 

Note also that depreciation apparently is high, as also is 

interest on the investment, both of which are included under 

general expense. 

1. Selling expense 4.1% 

2. Administrative salaries and wages 3.8% 

3. Rent 2.0% 

4. Light, heat, and power 0.1% 

5. Warehouse, freight, and packing 0.7% 

6. Insurance and taxes 0.4% 

7. Office expense 0.3% 

8. Bad accounts 0.6% 

9. Advertising 0.4% 

10. General expense 2.2% 

Total costs 14.6% 



48 GRAPHIC SALES ANALYSIS 

A TYPICAL DRUG HOUSE 
(Annual sales $1,625,500) 

Itemized here are the expenses in dollars and cents, as 
well as in percentages, of an average wholesale drug house. 
While there is some deviation from the itemized average 
costs of this line for the entire country as given in the pre- 
ceding table, it will be noted that the total percentages are 
fairly consistent. 

1. SeUing expense $ 99,155.50 or 6.1% 

2. Administrative salaries and wages 58,518.00 or 3.6% 

3. Rent 13,004.00 or 0.8% 

4. Light, heat, and power 1,625.50 or 0.1% 

5. Warehouse, freight, and packing. 6,502.00 or 0.4% 

6. Insurance and taxes 9,753.00 or 0.6% 

7. Office expense 6,502.00 or 0.4% 

8. Bad accounts 13,004.00 or 0.8% 

9. Advertising 9,753.00 or 0.6% 

10. General expense 16,255.00 or 1.0% 

Total costs $234,072.00 or UA% 

WHOLESALE HARDWARE COSTS 
(Annual sales $500,000 to $1,000,000) 

Indicated average costs for hardware wholesalers gathered 
during the country-wide investigation involved in the prepa- 
ration of this book are given below. Note (1) that salaries 
and wages are higher than those in many other lines; (2) 
that general expense — depreciation, repairs, and interest — . 
is extremely heavy. 

1. Selling expense 5 . 9% 

2. Administrative salaries and wages 6 . 2% 

3. Rent 1.2% 

4. Light, heat, and power 0. 2% 

5. Warehouse, freight, and packing 0.7% 

6. Insurance and taxes : 0.7% 

7. Office expense 0.7% 

8. Bad accounts 0.8% 

9. Advertising 0.3% 

10. General expense 2.5% 

Total costs 19.2% 



A\^OLESALE DATA AND FIGURES 49 

OPERATING COSTS OF A TYPICAL 
HARDWARE HOUSE 
(Annual sales $650,000) 

The costs in a typical wholesale hardware house with 
gross sales of $650,000 annually will probably adhere quite 
closely to the figures given in this table. Stock turnovers in 
hardware are not many, investigation indicates, and a com- 
paratively small stock may represent a large amount of 
capital invested. 

1. Selling expense $ 20,150.00 or 3.1% 

2. Administrative salaries and wages 33,800.00 or 5.2% 

3. Rent 9,750.00 or 1.5% 

4. Light, heat, and power 650.00 or 0.1% 

5. Warehouse, freight, and packing. 5,850.00 or 0.9% 

6. Insurance and taxes 3,900.00 or 0.6% 

7. Office expense 4,550.00 or 0.7% 

8. Bad accounts 12,350.00 or 1.9% 

9. Advertising 2,600.00 or 0.4% 

10. General expense 24,700.00 or 3.8% 

Total costs $118,300.00 or 18.2% 

WHOLESALE ELECTRICAL GOODS COSTS 
(Annual sales $500,000) 

Below are given the average indicated costs of doing busi- 
ness in electrical goods at wholesale, as learned by investiga- 
tion. Note (1) that warehouse, freight and packing expenses 
are high; and (2) that administrative salaries and wages 
also are heavy. 

1. Selling expense 5.2% 

2. Administrative salaries and wages 5 . 9% 

3. Rent 0.9% 

4. Light, heat, and power 0. 1% 

5. Warehouse, freight, and packing 1 . 1% 

6. Insurance and taxes 0.6% 

7. Office expense 0.5% 

8. Bad accounts • 1 . 5% 

9. Advertising 1 . 5% 

10. General expense 0.8% 

Total costs 18.1% 



50 GRAPHIC SALES ANALYSIS 

A TYPICAL ELECTRICAL GOODS HOUSE 

(Annual sales S632,000) 

Here are costs of doing business for a typical electrical 
goods wholesaler. Note that the selling expense ran con- 
siderably higher than the indicated average for the entire 
country. However, warehouse, freight, and packing costs 
are unusually low and the loss from bad accounts is com- 
paratively small. 

1. Selling expense $ 39,816.00 or 6.3% 

2. Administrative salaries and wages 27,176.00 or 4.3% 

3. Rent 6,320.00 or 1.0% 

4. Light, heat and power 632.00 or 0.1% 

5. Warehouse, freight, and packing. 3,160.00 or . 5% 

6. Insurance and taxes 2,528.00 or 0.4% 

7. Office expense 9,480.00 or 1.5% 

8. Bad accounts 5,056.00 or 0.8% 

9. Advertising 9,480.00 or 1.5% 

10. General expense 11,376.00 or 1.8% 

Total costs $115,024.00 or 18.2% 

OPERATING COSTS OF WHOLESALE 

DRY GOODS CONCERNS 

(Annual sales $500,000 to $1,000,000) 

These percentages are indicated to be the average costs 

for dry goods houses from aU parts of the country. In the 

extreme East and West costs apparently were higher than 

in the Middle W^est. Note (1) the high charge for seUing 

expense; (2) the high advertising costs. 

1. SeUing expense 4 . 9% 

2. Administrative salaries and wages 1 . 7% 

3. Rent 1.0% 

4. Light, heat, and power . 4% 

5. Warehouse, freight, and packing 0.4% 

6. Insurance and taxes . 5% 

7. Office expense 0.3% 

8. Bad accounts . 5% 

9. Advertising 1 . 5% 

10. General expense 1-6% 

Total costs 12.8% 




Figure 15: This graph represents cost-of doing -business figures aver- 
aged from the bcK>ks of scores of wholesale concerns located mainly in 
the Middle West. Excessively low and high figures were not considered. 



1880 


1885 1890 18SS 1900 180S 


1910 1915 1816 

































, 















How the Cost of Doing Business 

Has Gone up in one 

Wholesale House 








-y 












y 










y 












y 


























y 
















y 














y 




















/ 


















y 


/ 


















y 
















^y 
















r^ 



























































































Figure 16: The concern whose cost -of -doing-business figures are 
charted here is one of the oldest in the country. Its costs offer a 
striking example of the steady rise in the operating costs of a business. 

51 



52 GRAPHIC SALES ANALYSIS 

A TYPICAL DRY GOODS HOUSE 

(Annual sales $625,000) 
This house is located in the Middle West. Expense for 
rent is unusually high as the company maintains a well- 
equipped building in a large city. Selling expense has been 
held well below average, as you will note, because of a 
comparatively narrow field of distribution. 

1. Selling expense $22,525.20 or 3.6% 

2. Administrative salaries and wages 8,759.80 or 1.4% 

3. Rent 15,692.50 or 2.5% 

4. Light, heat, and power 1,877.10 or 0.3% 

5. Warehouse, freight, and packing. . 3,754.20 or 0.6% 

6. Insurance and taxes 3,128.50 or 0.5% 

7. Office expense 3,754.20 or 0.6% 

8. Bad accounts 625.70 or 0.1% 

9. Advertising 6,257.00 or 1.0% 

10. General expense 10,011.20 or 1.6% 

Total costs 176,385.40 or 12.2% 

TOTAL COSTS OF DOING BUSINESS BY LINES 

Approximate total costs of doing business for four lines 
are given here. Individual wholesale houses may find their 
costs varying considerably from these figures, as the class of 
goods handled within ekch line, the location, and the extent 
of the territory covered have a decided influence on the 
cost of doing business in each instance. 

Cost of doing 

Line business 

Jewelry 18.2% 

MiUinery 19% to 25% 

Glassware 25% to 28% 

Lace 18% to 28% 

Investigation brought out sharply the fact that the methods 
employed in the different wholesale lines vitally influence 
the sales expense. In some wholesale shoe houses, for 
example, salesmen are largely used to sell direct to the trade. 
Those houses, it was found, often supplemented the efforts 
of the sales force with a great deal of direct advertising. The 



WHOLESALE DATA AND FIGURES 



53 



personal sales expense in houses of this kind often runs over 
6%. On the other hand, the wholesaler who manufactures 
part of his product and sells directly to exclusive agencies or 
to jobbers frequently is able to shift considerable of the 
personal selling expense. Development of the S5aidicated 
lines among the wholesale druggists has served in various 
sections to narrow the territory and consequently to reduce 
the selling costs. In the large dry-goods houses, selling 
costs varied widely, owing to the number of textile lines 
handled by the individual houses. Many of these were 
manufacturers also. Selling expense in wholesale grocery 
houses is indicated to be much higher in the houses whose 
sales run between $500,000 and $1,000,000, probably 
because of the wider territory covered and the growing 
tendency of the large houses to engage in extensive adver- 
tising campaigns to promote their private brands. Selling 
expense in houses whose sales run under $500,000 is indicated 
to run much lower, for, as investigation showed, this type of 
wholesaler usually confines his sales almost entirely to 
neighborhood limits. 

SELLING COSTS 
(Annual sales over $1,000,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries. 3.1% 2.5% 

Clothing 6.0% 5.2% 

Hardware 6.4% 4.0% 

Shoes 4.9% 4.0% 

Drugs... 4.1% 3.5% 

(Annual sales $500,000 to $1,000,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 2.2% 1.8% 

Clothing 5.5% 4.5% 

Hardware 5.9% 3.6% 

Electrical goods 5.2% 3.9% 

Dry goods 4.9% 4.5% 



54 GRAPHIC SALES ANALYSIS 

(Annual sales less than $500,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 1.7% 1.4% 

Hardware 4.2% 3.8% 

Electrical goods 4.6% 4.0% 

Hundreds of the smaller wholesalers, especially those 
whose field of distribution is distinctly local, investigation 
indicates, did not recognize advertising as a specific expense, 
and the cost of calendars, memorandum books, and other 
souvenirs issued by them often was carried in the general 
expense. Some wholesale grocers spend as high as 0.75% 
of their net sales annually for advertising. They cover a 
wide territory and distribute their own brands of package 
and canned goods. On the other hand, grocers whose 
business is confined to narrower sections sometimes put out 
only a few private brands, and their advertising expense, 
investigation revealed, seldom exceeds 0.25% of their net 
sales. Typical percentages given are averages of the most 
carefully compiled cost figures given to the Bureau of Busi- 
ness Standards of the Shaw publications by dealers in the 
four classes indicated in the table. 

Attainable percentages given are averages based on the 
costs of the most effectively managed and successful concerns 
selected from the entire group of concerns from which the 
typical percentages were obtained. 

ADVERTISING COSTS 
(Annual sales more than $1,000,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 0.4% 0.3% 

Clothing 2.0% 1.8% 

Hardware 0.7% 0.5% 

Shoes 0.4% 0.3% 

Drugs 0.4% 0.5% 




Figure 17: This graph is effectively used as a wall chart in one con- 
cern. It shows all the important tendencies of inquiries, sales, and 
costs — a group of comparisons which guard every loophole through 
which profits might be lost. Such information is decidedly worth while. 



56 GRAPHIC SALES ANALYSIS 

(Annual sales $500,000 to $1,000,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 0.4% 0.3% 

Clothing 2.0%, 1.4% 

Hardware 0.3% 0.3% 

Electrical goods 1-5% 0.5% 

Dry goods 1.5% 0.9% 

(Annual sales less than $500,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 0.1% 0.1% 

Hardware 0.3% 0.2% 

Electrical goods 0.4% 0.2% 



Among the many small items of expense which mean but 
little when taken by themselves but which in the aggregate 
mean a big drain on the business in the course of a year, are 
the costs for stationery, postage, printing, supplies, interest, 
depreciation, and repairs. For purposes of classification it 
was found convenient to consider the items of stationery, 
postage, printing, and supplies, together, under the heading 
''office expense." The costs for these items among houses 
having annual sales of more than $1,000,000 was found to 
range from an indicated figure of 0.8% of sales in the case of 
hardware wholesalers to an indicated figure of 0.3%, which 
was found to be the average amount spent for these items by 
grocery, clothing, and drug houses. This was in spite of the 
fact that many broken orders normally make groceries and 
drugs expensive to handle in the warehouse and shipping 
room. The figures indicate this does not necessarily increase 
office expense. Indicated attainable cost figures for this 
item in grocery concerns is apparently 0.1% less than the 
indicated average cost in each class. Some of the hardware 
and shoe concerns which watch the small items of expense 
closest seem to have been able to reach an attainable figure 
approximately 0.2% lower than the indicated average. 



INSERT III 



Insert 
deternn 
— eitht 
ful. -i 



3d 

le 



3d 
le 



3d 
le 



3d 

16 

al 
le 
ai 

IS 

le 
m 

ly 
It 



J(olume^f Retail Trade in tlie United States 

^OhtT. 




VOLUME OF 
RETAIL TRADE 



VOLUME OF 
RETAIL TRADE 



VOLUME OF 
RETAIL TRADE 



1 Philadelphia, Pa. 
I Boston, Mass. 
i SI. Louis, Mo. 
i Clevelantt, Ohio 
' Ballimore, Md. 
I Pittsburgh, Pa. 



28 Columbus, Ohio 

29 Rochester, N. Y 

30 Oakland, Calif. 

31 Toledo, Ohio 



51 Mashville, Tenn. 
62 Lowell, Mass. 

53 Tacoma, Wash. 

54 Houston, Tex. 



t Cincinnati, Ohio 
j Newark, N. J. 
) New Orleans, La. 
' Washington, D. C 
1 Minneapolis, Minn. 
I Seattle. Washmgtor 
I Kansas City, Mo 

Portland, Ore. 
! Indianapolis, Ind. 
i Denver, Colorado 
I Providence, R. I. 
> St. Paul. Minn. 



S,569,<I00 
),092,600 
1,341,^00 
>,160,000 
1,992,009 



37 Spokane, Washington 

38 Worcester, Mass 

39 New Haven, Conn. 

40 Memphis, Tenn. 

41 Scranton, Pa. 

42 Fall River, Mass. 

43 Grand Rapids, Mich. 

44 Dayton, Ohio 

45 Paterson, N. J. 

46 Dallas, Texas 

47 San Antonio, Texas 

48 Bridgeport, Conn. 



29,937,000 
29,799,000 
29,362,200 
25,673,200 
25,658,200 
25,444,800 
24,919,740 
24,905,400 
24,766,200 
24,315,800 
23,631,600 



62 Des Moines, la. 

63 Lawrence, Mass. 

64 Schenectady, N. Y. 

65 Kansas City, Kan. 

66 Camden, N. J. 

67 Duluth, Minn. 

68 Wilmington, Del. 

69 Oklahoma, Okla. 

70 Yonkers, N. Y 

71 Norfolk, Va. 

72 Waterbury, Conn. 

73 Utica, N. Y. 

74 Akron, Ohio 

75 Lynn, Mass. 



19,903,800 
19,887,400 
19,121,940 



17,138,400 
17,125,000 
16,392,320 



76 Manchester, N. Y. 

77 Elizabeth, N. J. 

79 Wilk'es-BaJre, Pa. 
"80 Jacksonville, Fla. 

81 Fort Wayne, Ind. 

82 Evansville, Ind. 

83 Erie, Pa. 

84 E. St. Louis, III. 

85 Harrisburg, Pa. 

86 Peoria, III. 

87 South Bend, Ind. 

88 Savannah, Ga. 

89 Johnstown, Pa. 

90 Terre Haute, Ind. 

91 Holyoke, Mass. 

92 Brockton, Mass. 

93 Partlsnd, Me. 

94 Charleston, S. C. 

95 Possaic, N. J. 

96 Bayonne, N. J. 



VOLUME OF 
RETAIL TRADE 

16,656,600 
15,604,200 
15,583,200 
15,355,206 
16,499,800 
15,236,600 
16,216,600 



16,0 

14,941,600 

14,403,000 

14,291,600 

13,789,200 

13,761,000 

13,706,800 

13,216,600 

13,216,600 

12,824,810 

12,773,400 

12,146,800 

11,483,840 



Insert III: As dealer sales are an exceedingly important factor in 
determining distribution and selling, policies for ^o many distributors 
either manufacturers or wholesalers — this map will be found help- 
ful. You will find the cities classifu;d according to volume of retail 



trade, as explained fully in the key given below the map. Perhaps 
comparison of your own sales volume with the total volume of retail 
trade for these 98 cities will help you to locate the districts where addi- 
tional advertising or selling effort could be most profitably expended. 



56 



Gr 

Cl< 
Ha 
El( 
Dr 



Gr 
Ha 
Ek 



litt 
me 
the 
del 
wai 

"of 
hai 
rar 
hai 
wa{ 
gro 
fac 
dru 

TOO 

offi 
itei 
ind 
anc 
cloj 



WHOLESALE DATA AND FIGURES 



57 



OFFICE EXPENSE 

(Stationery, postage, printing, and supplies) 

(Annual sales more than $1,000,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 0.3% 0.2% 

Clothing 0.3% 0.2% 

Hardware 0.8% 0.6% 

Shoes 0.5% 0.3% 

Drugs 0.3% 0.2% 

(Annual sales $500,000 to $1,000,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 0.3% 0.3% 

Clothing 0.5% 0.4% 

Hardware 0.7% 0.6% 

Electrical goods 0.5% 0.7% 

Dry goods 0.3% 0.2% 

(Annual sales less than $500,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 0.2% 0.1% 

Hardware. 0.6% 0.5% 

Electrical goods 0.9% 0.5% 



Cost for interest, depreciation, and repairs are considered 
as a unit under this heading of * 'general expense.'* The 
cost figures for these items indicate that in both the typical 
and attainable figures hardware concerns again have the 
heaviest costs. In the large concerns the indicated typical 
cost is 3.7% of sales. The indicated average for concerns 
doing a business of $500,000 to $1,000,000 is 2.5%, while 
among the smaller concerns this item of expense rises to an 
indicated figure of 4%. These figures indicate apparently 
that the small hardware houses operate on a large amount 



58 



GRAPHIC SALES ANALYSIS 



of borrowed capital. Small electrical goods houses and the 
large shoe and drug houses also are indicated to have heavy 
items of general expense — in each case the figures running 
well over 2%. To prevent these small items from eating too 
deeply into the profits, wholesalers are paying more attention 
to classifying their goods, are installing cost systems which 
will indicate at a glance how much has been spent on these 
incidentals, and are giving more attention to methods which 
will reduce selling expense. 

GENERAL EXPENSE 

(Interest on owned and borrowed capital, depreciation, 

and repairs) 

(Annual sales more than $1,000,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 1.6% 1.3% 

Clothing 1.4% ^ 2.0% 

Hardware 3.7% 2.9% 

Shoes 2.7% 2.6% 

Drugs 2.2% 2.2% 

(Annual sales $500,000 to $1,000,000) 

Indicated Indicated 

typical attainable 

line costs costs 

Groceries 1.6% 1.0% 

Clothing 1.1% 1.4% 

Hardware 2.5% 3.9% 

Electrical goods 0.8% 2.0% 

Dry goods 1.6% 1.6% 

(Annual sales less than $500,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 1.4% 1,1% 

Hardware 4.0% 2.7% 

Electrical goods 2.9% 1.4% 



FIRST 
UTTEIil 



SECOND 

LETTER 

11 



SALES IN DOLLARS 
FROM LEHERS 



-Hthi 



THIRD 

ETHR 

U 



— Tfoui 



OURTH 
lEHER 

111 



HFTH 
lEHER 

LI 



H SDCTH 

HIT' 



SEVENTH 
UHER 



11 



H tIGHTH 
LETTER 



11 



^ UnK V 14 2S 2B 7 14 21 28 



7 14 21 28 7 U 2t 28 
WEEKS 



7 t4 21 28 7 (4 21 28 7 14 21 28 



Figure 18: In one concern this graph shows the income in dollars 
secured each successive week of a mail-order campaign through each 
letter. This plan shows the best letter-style, since it instantly tells 
everyone in the organization which letters bring in the biggest profit. 

59 




JAN. FEB. 



APR. MAY JUNE JULY AUG. SEPT. WT. NOV. DEC. 



Figure 19: This graph is used by one concern to watch the progress 
of successful letters to prospects and to check on those which are falling 
down. The total returns from each letter appear by months. Simple 
plans like this for locating result-producing methods are highly valuable. 

60 



WHOLESALE DATA AND FIGURES 



61 



Administrative salaries and wage expenses are higher 
apparently among wholesale hardware dealers of all classes 
than among other wholesale dealers. Cost fis;ures for 
wholesale electrical firms having annual sales of more than 
$1,000,000 are not included here, as the costs in the few 
big syndicate firms might not give a true indication of general 
costs in this line. Careful examination of the detailed figures 
indicates the item of wages varies more than the item of 
administrative salaries. Handling hardware, especially 
engines and machinery, perhaps requires a higher degree of 
skill than handling groceries or shoes. The wage item also 
usually is a heavy cost factor among electrical firms. 

ADMINISTRATIVE SALARIES AND WAGES 
(Annual sales more than $1,000,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 3.0% 2.8% 

Clothing 4.0% 3.8% 

Hardware 7.9% 7.5% 

Shoes 3.2% 2.4% 

Drugs 3.8% 3.0% 

(Annual sales $500,000 to $1,000,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 2.2% 2.3% 

Clothing 3.5% 2.6% 

Hardware 6.2% 5.0% 

Electrical goods 5.9% 5.6% 

Dry goods 1.7% 1.5% 

(Annual sales less than $500,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 2.0% 2.0% 

Hardware 5.3% 4.7% 

Electrical goods 4.9% 4.9% 



62 



GRAPHIC SALES ANALYSIS 



From these figures it is apparent that packing and ship- 
ping costs run higher in the shoe, electrical, and hardware 
lines, than in dry goods, groceries, drugs, and clothing 
establishments. Many shoe wholesalers are also manu- 
facturers, and much of the high shipping cost in this line 
comes from the necessity of providing boxes for each pair 
of shoes. Bulky goods, such as in the electrical and hard- 
ware lines, naturally create a larger shipping expense. The 
figures for large wholesale drug concerns indicate a fairly 
high expense for these items, probably due to the great care 
necessary in handling these goods and to the number of 
small, mixed orders. 

PACKING AND SHIPPING COSTS 
(Annual sales more than $1,000,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 0.5% 0.3% 

Clothing 0.4% 0.3% 

Hardware 1.0% 0.9% 

Shoes 1.1% 0.7% 

Drugs 0.7% 0.5% 

(Annual sales $500,000 to $1,000,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 0.5% 0.2% 

Clothing 0.4% 0.3% 

Hardware 0.7% 0.8% 

Electrical goods 1.1% 0.7% 

Dry goods 0.4% 0.2% 

(Annual sales less than $500,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 0.3% 0.2% 

Hardware 0.6% 0.5% 

Electrical goods 0.9% 0.5% 



WHOLESALE DATA AND FIGURES 



a3 



Clothing wholesalers and wholesale druggists are indicated 
by these figures to pay the highest amounts for rent. This 
condition exists apparently because these businesses usually 
are located in the center of an expensive business district 
and because the type of goods carried demands the best 
possible fire protection. Many clothing wholesalers also are 
manufacturers and, of course, require more room for their 
business than wholesaling alone would demand. 



WHAT RENT COSTS 
(Annual sales more than $1,000,000) 
Indicated 
typical 
Line costs 

Groceries 0.4% 

Clothing 1.2% 

Hardware 1.0% 

Shoes 0.6% 

Drugs 2.0% 

(Annual sales $500,000 to $1,000,000) 
Indicated 
typical 
Line costs 

Groceries 0.6% 

Clothing 1.4% 

Hardware 1.2% 

Electrical goods 0.9% 

Dry goods 1.0% 

(Annual sales less than $500,000) 
Indicated 
typical 
Line costs 

Groceries 0.5% 

Hardware 1.2% 

Electrical goods 1.0% 



Indicated 
attainable 
costs 
0.4% 
0.8% 
0.8% 
0.4% 
1.5% 



Indicated 
attainable 
costs 
0.5% 
0.9% 
1.0% 
0.7% 
0.8% 



Indicated 
attainable 
costs 
0.4% 
1.5% 
1.0% 



These figures for light, heat, and power costs indicate that 
clothing and dry goods houses have the highest average 
expenses for these items. This apparently is due to the 



64 



GRAPHIC SALES ANALYSIS 



fact that clothing and dry goods houses often maintain 
large buildings and not infrequently manufacture part of 
their products. The figures also show that these items 
of expense apparently are as high or higher for houses doing 
an annual business of $500,000 to $1,000,000, as for the larger 
houses, since many firms require a larger building when the 
sales go over the $500,000 mark. In some cases the indicated 
attainable standard for this item of expense is larger than 
the average cost for all concerns. This is largely due to 
the fact that the group of concerns from which the indicative 
attainable standards were taken usually used more modern 
methods and were housed in better equipped buildings. 

LIGHT, HEAT, AND POWER COSTS 
(Annual sales more than $1,000,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 0.1% 0.1% 

Clothing 0.3% 0.2% 

Hardware 0.2% 0.1% 

Shoes 0.2% 0.2% 

Drugs 0.1% 0.2% 

(Annual sales $500,000 to $1,000,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 0,2% 0.2% 

Clothing 0.3% 0.2% 

Hardware 0.2% 0.2% 

Electrical goods 0.1% 0.3% 

Dry goods 0.4% 0.3% 

(Annual sales less than $500,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 0.1% 0.1% 

Hardware 0.2% 0.1% 

Electrical goods 0.1% 0.1% 



1 1 M 1 1 1 1 1 




1 
f 


T»1« 


Kid 


- 


Prophecy Curve 

MnaptoMyl,1918comp8fBd 
with iuly 1 , mSand salet 




















'i 


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w 


•ctti 




















i 


i 




' 
























^ 


i 


























/ 


/ 


























r 


^ 
























/ 




























y 


f 


























J, 


/ 




























1 




























i 





























Jn Fatk Mat Aii> M*y Jun* My Aug. SM- OcL Nm. Dec. 





I — 1 


— 






~~ 




i 1 


















Don..-i..^ 


— 






























































































































































^^^ 




































































\ 






















\ 












































































































































h i„_ iri„. 


■ 














m ero 








\. 






X / 


Dollars o(A„.,.u„„» 


^' 


\ 






y^ 


/ 
















sA/- 


^^ 


















s. 






















\ 


/ 







































































































Figure 20: When sales might have Figure 21: This chart shows the 
slumped, this "prophecy curve" relation of sales to the advertising 
told where to put added pressure. costs and the number of inquiries. 



ttfluary 

iwitHlntll 



ttttm 



.1911 



^Na^ 



ffit 



i 






-A 



--i\ 



\A 



A: 



Percentage of 
UMlulrles to Orders 



m 




9^6^ / S 



:3^ 



5: 



:^ 



Figure 22: Each factor in a sales 
campaign can be charted to show 
just which one brings the business. 



Figure 23: This graph charts the 
percentage of orders to inquiries 
each month from the follow-up. 



65 





1 


tawjooo^QO 

180,0004)0 


MIt 


FER 


MAR. 


APR. 


MAY 


ms. 


JUIY 


Aue.. 


SEPT 


otx 


nm. 


DEC 










































170000,00 
16043COJ» 
150^00,00 
1«,0fl0i)0 
130.000,00 
1204)00,00 
11041004)0 
100.0004K) 
SO.OCO.00 








CABINET SHOP 
















ANTICPATED VOtUME OF 8USIKESS 1S18 








.' 








ACTUAL • • • 1918 
















mm IIICR£ASiN3 WITH EACH MOimrS CHAfifiES 






» 
















• 






































f' 






















r' 




















1 




* 




















/ 


• 






















/ 


• 
























A^ 








604)00.00 
500004)0 
404)0000 
304)004)0 
200004)0 
10800,00 














^ 


r 










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■"■""■ 
















^ 


■'__^ 


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1 



Figure 24: This chart is prepared at the first of each year by an 
eastern concern. Anticipated and actual sales are checked tip on it, 
and whenever a slump is indicated, timely remedies can be applied. 



■ ■ 1 




.'AW. 


FEE. 


MARCH 


APKiL 


MAY 


wn 


U.H 


AUS. 


SEPT. 


OCT. 


N8V. 


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MOHTKLY QUOTA 
ACTUAL SALES 






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1 



Figure 25: In one concern each salesman receives a chart like this 
every month. It pictures the relation between his sales and his quota, 
and shows whether he is doing more or less than is expected of him. 

66 



A^HHOLESALE DATA AND FIGURES 



Insurance and tax costs are fairly stable, investigation 
indicated, in businesses of the same size and kind. The large 
firms seem to have less opportunity for reducing these items 
of expense than the small ones. However, many firms were 
able to make substantial reductions in their insurance costs 
by installing fire-protection systems, by rearranging stock, 
and by keeping the building clean. Some small hardware 
houses apparently have been able to make substantial 
savings on these items while the most successful small 
grocery concerns, and those having sales of more than 
$1,000,000, apparently have an investment in buildings and 
stock which requires a slightly larger expenditure. 

INSURANCE AND TAXES 
(Annual sales more than $1,000,000) 

Indicated Indicated 

typical attmnable 

Line costs costs 

Groceries 0.4% 0.5% 

Clothing 0.4% 0.3% 

Hardware 0.7% 0.7% 

Shoes 0.6% 0.4% 

Drugs 0.4% 0.3% 

(Annual sales $500,000 to $1,000,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 0.5% 0.5% 

Clothing 0.4% 0.3% 

Hardware 0.7% 0.6% 

Electrical 0.6% 0.5% 

Dry goods 0.5% 0.3% 

(Annual sales less than $500,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 0.4% 0.5% 

Hardware 0.8% 0.4% 

Electrical goods 0.4% 0.4% 



68 GRAPHIC SALES ANALYSIS 

Cost figures gathered from 387 wholesalers indicate that 
with concerns doing a business of more than $1,000,000 a 
year, shoe and clothing firms lead in expense for bad debts 
with marks of 1.6%, while for wholesalers of clothing 1% is 
indicated as a fair cost. Perhaps the answer to the higher 
indicated costs for bad debts for these lines may be laid, at 
least partly, to changing styles. A retailer, who is caught 
with a large stock on hand, unsalable because of changed 
styles, is, of course, likely to become a ''bad-pay," or at best 
a "slow-pay." Electrical goods concerns are indicated to be 
the hardest hit by bad debt costs of the wholesalers in the 
seven lines investigated. 

WHAT BAD DEBTS COST 
(Annual sales more than $1,000,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 0.7% 0.4% 

Clothing 1.2% 1.0% 

Hardware 1.1% 0.8% 

Shoes : 1.6% 0.6% 

Drugs 0.6%, 0.5%o 

(Annual sales $500,000 to $1,000,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 0.5% 0.4% 

Clothing 1.0% 0.8% 

Hardware 0.8%, 0.7% 

Electrical goods 1.5%, 0.8% 

Dry goods 0.5%, 0.3% 

(Annual sales less than $500,000) 

Indicated Indicated 

typical attainable 

Line costs costs 

Groceries 0.5% 0.4% 

Hardware 0.6% 0.5% 

Electrical goods 0.9% 0.3% 



WHOLESALE DATA AND FIGURES 6^ 

These figures represent the rates of turnover in a repre- 
sentative house in each of the lines mentioned. The turnover 
rate, of course, varies widely within each line, depending on 
the location of the house and the merchandise handled. 

Line Gross sales Turnovers 

Grocery $500,000 to $1,000,000 6 

Grocery $1,000,000 and over 10 

Drugs $1,000,000 and over 6 to 6j^ 

Hardware $1,000,000 and over 3 

Clothing $1,000,000 and over 2 

Shoes , $1,000,000 and over 5 

Indicated typical cost figures and indicated attainable 
standards given here are for firms doing an annual business 
of $500,000 to $1,000,000 and for firms having annual sales 
of less than $500,000. From these figures you can easily 
determine your approximate cost of doing business. Take 
the typical and indicated attainable cost figures for your 
line and class of business and write them down in one col- 
umn. You then have a basis for comparison of your figures 
with the average for your line and by checking figures by 
columns you can keep close tab on your operating costs for 
the coming year. 

WHOLESALE GROCERIES 
(Annual sales $500,000 to $1,000,000) 

Indicated Indicated 
typical attainable 
costs costs 

Selling expense 2.2% 1.8% 

Administrative salaries and wages . 2 . 2% 2 . 3% 

Rent 0.6% 0.5% 

Light, heat, and power 0.2% 0.2% 

Packing and shipping . 5% . 2% 

Insurance and taxes . 5% 0.5% 

Office expense 0.3% 0.3% 

Bad debts 0.5% 0.4% 

Advertising 0.4% 0.3% 

General expense 1.6% 1.0% 

Total costs 9.0% 7.5% 



70 



GRAPHIC SALES ANALYSIS 



WHOLESALE GROCERIES 
(Annual sales less than $500,000) 
Indicated 
typical 
costs 

Selling expense 1 . 7% 

Administrative salaries and wages . 2 . 0% 

Rent 0.5% 

Light, heat, and power 0.1% 

Packing and shipping 0.3% 

Insurance . 4% 

Office expense . 2% 

Bad debts 0.5% 

Advertising . 1% 

General expense 1-4% 

Total costs 7.2% 

WHOLESALE CLOTHING 
(Annual sales $500,000 to $1,000,000) 
Indicated 
typical 
costs 

Selhng expense 5 . 5% 

Administrative salaries and wages . 3 . 5% 

Rent 1.4% 

Light, heat, and power 0.3% 

Packing and shipping 0.4% 

Insurance and taxes . 4% 

Office expense . 5% 

Bad debts 1.0% 

Advertising 2.0% 

General expense 1 . 1% 

Total costs 16.1% 

WHOLESALE ELECTRICAL GOODS 
(Annual sales less than $500,000) 
Indicated 
typical 
costs 

Selling expense 4 . 6% 

Administrative salaries and wages. 4 . 9% 
Rent: 1.0% 



Indicated 

attainable 

costs 

1.4% 
2.0% 
0.4% 
0.1% 
0.2% 
0.5% 

0.1% 
0.4% 

0.1% 
1.1% 
6.3% 



Indicated 
attainable 
costs 
4.5% 
2.6% 
0.9% 
0.2% 
0.3% 
0.3% 
0.4% 
0.8% 
1.4% 
1.4% 



12.8% 



Indicated 
attainable 
costs 
4.0% 
4.9% 
1.0% 



WHOLESALE DATA AND FIGURES 



71 



WHOLESALE ELECTRICAL GOODS, Continued 

Indicated Indicated 

typical attainable 
costs costs 

Light, heat, and power 0. 1% 0.1% 

Packing and shipping 0.9% . 5% 

Insurance and taxes . 4% . 4% 

Office expense 0.9% 0.5% 

Bad debts 0.9% 0.3% 

Advertising 0.4% 0.2% 

General expense 2 . 9% 1.4% 

Total costs 17.0% 13.3% 

WHOLESALE HARDWARE 
(Annual sales $500,000 to $1,000,000) 

Indicated Indicated 

typical attainable 
costs costs 

Selling expense 5.9% 3.6% 

Administrative salaries and wages . 6 . 2% 5 . 0% 

Rent 1.2% 1.0% 

Light, heat, and power 0.2% 0.2% 

Packing and shipping 0.7% 0.8% 

Insurance and taxes . 7% . 6% 

Office expense 0.7% 0.6% 

Bad debts 0.8% 0.7% 

Advertising 0.3% 0.3% 

General expense 2.5% 3.9% 

Total costs 19.2% 16.7% 

WHOLESALE HARDWARE 
(Annual sales less than $500,000) 

Indicated Indicated 

typical attainable 
costs costs 

Selling expense 4.2% 3.8% 

Administrative salaries and wages . 5.3% 4 . 7% 

Rent 1.2% 1.5% 

Light, heat, and power 0.2% 0.1% 

Packing and shipping . 6% . 5% 

Insurance and taxes ; 0.8% 0.4% 

Office expense 0.6% 0.5% 



72 



GRAPHIC SALES ANALYSIS 



WHOLESALE HARDWARE, Ck)iitinued 

Indicated Indicated 

typical attainable 

costs costs 

Bad debts 0.6% 0.5% 

Advertising 0.3% 0.2% 

General expense 4.0% 2 . 7% 

Total costs 17.8% 14.9% 

All the cost figures that follow apply to concerns in the 
different lines doing an annual business of more than 
$1,000,000 unless otherwise indicated. In case yours is- a 
wholesale electrical goods firm with aimual sales of more 
than $1,000,000 you can approximate your expense for the 
different items by adding slightly to each typical cost figure 
given here. In case yours is a dry goods firm with annual 
sales of more than $1,000,000 or less than $500,000 you can 
figure your approximate costs by adding to the figures given 
in one case and subtracting in the other. The investigation 
showed that total costs for the larger wholesale dry goods 
firms were about 2.5% higher than the typical figure here 
shown and that the total costs for the smaller houses of 
this line were about 3% lower. 



WHOLESALE GROCERIES 
(Annual sales more than $1,000,000) 
Indicated 
typical 
costs 

Selling expense 3 . 1% 

Administrative salaries and wages . 3 . 0% 

Rent 0.4% 

Light, heat, and power 0.1% 

Packing and shipping . 5% 

Insurance and taxes . 4% 

Office expense . 3% 

Bad debts : 0.7% 

Advertising . 4% 

General expense 1.6% 

Total costs 10.5% 



Indicated 


costs 


2.5% 


2.8% 


0.4% 


0.1% 


0.3% 


0.5% 


0.2% 


0.4% 


0.3% 


1.3% 


8.8% 



WHOLESALE DATA AND FIGURES 



73 



WHOLESALE SHOES 
(Annual sales more than $1,000,000) 

Indicated 

typical 

costs 

Selling expense 4 . 9% 

Administrative salaries and wages . 3 . 2% 

Rent 0.6% 

Light, heat, and power 0-2% 

Packing and shipping 1 . 1% 

Insurance and taxes . 6% 

Office expense . 5% 

Bad debts 1.6% 

Advertising . 4% 

General expense 2 . 7% 

Total costs 15.8% 

WHOLESALE DRUGS 
(Annual sales more than $1,000,000) 

Indicated 

typical 

costs 

SeUing expense 4 . 1% 

Administrative salaries and wages . 3 . 8% 

Rent 2.0% 

Light, heat, and power 0.1% 

Packing and shipping 0.7% 

Insurance and taxes . 4% 

Office expense . 3% 

Bad debts 0.6% 

Advertising . 4% 

General expense 2 . 2% 

Total costs 14.6% 

WHOLESALE DRY GOODS 
(Annual sales $500,000 to $1,000,000) 

Indicated 

typical 

costs 

SelUng expense 4 . 9% 

Administrative salaries and wages . 1 . 7% 
Rent 1.0%, 



Indicated 

attainable 

costs 

4.0% 

2.4% 

0.4% 

0.2% 

0.7% 

0.4% 

0.3% 

0.6% 

0.3% 

2.6% 
11.9% 



Indicated 

attainable 

costs 

3.5% 
3.0% 
1.5% 
0,2% 
0.5% 
0.3% 
0.2% 
0.5% 
0.5% 
2.2% 



12.4% 



Indicated 
attainable 
costs 

4.5% 
0.5% 
0.8% 



74 



GRAPHIC SALES ANALYSIS 



WHOLESALE DRY GOODS, Continued 

Indicated Indicated 

typical attainable 

costs costs 

Light, heat, and power 0.4% 0.3% 

Packing and shipping 0.4% 0.2% 

Insurance and taxes . 5% . 3% 

Office expense 0.3% 0.2% 

Bad debts 0.5% 0.3% 

Advertising 1.5% 0.9% 

General expense. 1.6% 1^6% 

Total costs 12.8% 10.6% 



WHOLESALE CLOTHING 
(Annual sales more than $1,000,000) 

Indicated 

typical 

costs 

Selling expense 6.0% 

Administrative salaries and wages . 4 . 0% 

R«nt 1.2% 

Light, heat, and power 0.3% 

Packing and shipping 0.4% 

Insurance and taxes . 4% 

Office expense . 3% 

Bad debts 1.2% 

Advertising 2.0% 

General expense 1.4% 

Total costs 17.2% 



Indicated 

attainable 

costs 

5.2% 
3.8% 
0.8% 
0.2% 
0.3% 
0.3% 
0.2% 
1.0% 
1.8% 
2.0% 



15.6% 



WHOLESALE HARDWARE 
(Annual sales more than $1,000,000) 

Indicated Indicated 

typical attainable 

costs costs 

Selling expense 6.4% 4.0% 

Administrative salaries and wages . 7 . 9% 7 . 5% 

Rent 1.0%, 0.8% 

Light, heat, and power 0.2% 0.1% 

Packing and shipping 1.0% 0.9% 

Insurance and taxes . 7% . 7% 



INSERT IV 




CmClNNATl-Ohio (E»™pt 



: in this map of the United States are shown the dividing lines to meet the individual selling needs of the distributor-whether whole- Atlanta. Just which counties are included in each <i>=^-;^- -J^^^^ b™ dTstrfb'trwCutt'^^^^^^^^^^ -gionL' sales"'' u's 

C^^ the nine important sales districts of the country, as indicated saler or manufacturer. County lines, rather than state lines, are fol- fully in the key given below the map, as you will note. Note also the by even^ distributor who is '"t«f^^^^° 

K Tf,?rnvestirtrori Serent type of shading has been used for Wed, and were determined after a careful examination into economical information given concerning population, land area, and population per chief advantage consists m '"-^"6 '^P°^f' ^ 

'^^lltrTSXtricislUe~mbii«dorsubdivided.ofcourse. Taaway travel. In th=s particular instance, the home office is located in square mile for each of the nine districts. This map was specially pre- economxcally and applying concentration w 



Its 

route salesmen more 

where it is most needed. 



ach section. These districts may 1 



74 



Lighl 

Pack 

Insu] 

Offic( 

Bad 

Adv€ 

Gene 



Selli] 
Adir 
Rem 
Ligb 
Pad 
Tnsij 
Offic 
Bad 
Adv 
Gen 



Selli 
AdD 
Ren 
Lig] 
Pac 
Insi 



WHOLESALE DATA AND FIGURES 75 

WHOLESALE HARDWARE, Continued 

Indicated Indicated 

typical attainable 
costs costs 

Office expense 0.8% 0.6% 

Bad debts 1.1% 0.8% 

Advertising 0.7% 0.5% 

General expense 3.7% 2.9% 

Total costs 23.5% 18.8% 



WHOLESALE ELECTRICAL GOODS 
(Annual sales $500,000 to $1,000,000) 

Indicated Indicated 

typical attainable 

costs costs 

Selling expense 5.2% 3.9% 

Administrative salaries and wages . 5 . 9% 5 . 6% 

Rent 0.9% 0.7% 

Light, heat, and power 0.1% 0.3% 

Packing and shipping 1.1% 0.7% 

Insurance and taxes . 6% . 5% 

Office expense 0.5% 0.7% 

Bad debts 1.5% 0.8% 

Advertising 1.5% 0.5% 

General expense 0.8% 2.0% 

Total costs 18.1% 15.7% 



General average costs of doing business secured from the 
books of the members of the Southern Wholesale Grocers ' 
Association are shown on the following pages. Indicative 
figures have been compiled from grocers in 11 states. 
These figures were obtained by the Bureau of Business 
Standards of the Shaw Publications in a nation-wide investi- 
gation of wholesalers' costs. The attainable percentages 
given are averages based on the costs of the most effectively 
managed concerns selected from the entire group of concerns 
from which the typical percentages were obtained. Un- 
usually low or high figures have been purposely omitted in 
the compilation in order to arrive at typical averages only. 



76 CxRAPHIC SALES ANALYSIS 



AVERAGE COSTS OF DOING 
SOUTHERN WHOLESALE 



Average for Ala. Ark. Fla. Ga. La. 

Selling Expense .0266 .0195 .0246 .0234 .0165 

Salaries, sales force . 0160 .0088 .0142 .0266 .0116 

Commissions 

Sales traveling ex- 
pense .0101 .0099 .0115 .0080 .0045 

Advertising, in- 
cluding catalog. . .0011 .0100 .0024 .0005 .0004 

Shipping and 
Warehouse 0105 .0100 .0113 .0088 .0124 

Wages — receiving, 
shipping, stock 0108 .0010 .0098 .0102 

Drayage and Ex- 
press 0002 .0010 .0013 .0022 

Management and 
Office 0132 .0174 .0174 .0180 .0202 

Manufacturing and 
office salaries 0183 .0118 .0152 .0171 

Printing and sta- 
tionery 0040 .0014 .0036 

Officesupplies 0001 0027 

Postage 0016 .0018 .0018 

Credit and collec- 
tion 0005 .0015 .0002 .0004 

Fixed Charges — 
Upkeep 0062 .0054 .0075 .0091 .0186 

Rent, including 

warehouse 0003 .0032 .0037 

Heat, light, and 

power 0005 .0003 .0016 .0004 

Insurance, credit, 

casualty 0023 .0013 .0016 .0013 

Taxes, mercantile 

and corporation 0044 .0015 .0037 .0026 



WHOLESALE DATA AND FIGURES 



77 



BUSINESS— FROM MEMBERS OF THE 
GROCERS' ASSOCIATION 















General 


N. C. 


S.C. 


Okla. 


Tenn. 


Texas 


Va. 


average 

of each 

item 


.02125 
.0150 


.0438 
.0077 


.02359 

.0155 

.0010 


.0261 
.0148 
.0050 


.02652 
.0160 


.02 
.0150 


.0247 
.0146 
.0030 


.0050 





.01005 


.0108 


.00652 


.0050 


.00813 


.0018 


.0010 




.0005 


.0019 




.00216 



.0081 .0062 .00737 .01005 .0157 .0137 .01028 

,0062 .0062 .0073 .0038 .00853 .0225 .00766 

.0025 00052 .0026 .00306 00167 

,0221 .0164 .01658 

01787 01310 



.00311 004018 

.0010 00121 

.00149 00166 

.00075 0093 



0146 


.0078 


.01394 


.0228 


0112 


.0078 


.01026 


.0215 


0012 
0012 
0025 




.0008 
.0003 
.000846 


!o626 


0020 




.000145 


.0020 


0150 


.0160 


.0097 


.0054 


0050 


.0120 


.0026 




0012 




.0003 




0012 


.0012 


.00225 




.0062 


.0068 


.0044 





.0093 .0025 .0086 

.00243 ..... .00706 

.0006 0007 

.00179 001617 

.00364 00415 



78 



GRAPHIC SALES ANALYSIS 



AVERAGE COSTS OF DOING 
SOUTHERN WHOLESALE GRO- 



Average f or Ala. Ark. Fla. 

Repairs and depre- 
ciation 0003 

Miscellaneous 

Expense 005 .0027 .0030 

Telephone and tele- 
graph 0005 .0004 

Association dues. 0007 

Charity and unjust 
claims 0009 

Damage and break- 
age 

Expressage on re- 
turned goods 

Losses and Bad 
Debts 0056 .0048 .0095 

Interest on Cap- 
ital 6% 0090 .0070 .0075 

Interest on Bor- 
BOWED Capital 
6% 0015 .0069 .0040 

Total Cost Aver- 
age 0689 .0619 .07695 



Ga. 

0001 
.0033 



La. 



0143 



,0024 



00052 
00034 


.0012 
.0002 


(mu 


.0010 


0002 




00001 




0108 


.0017 


,0099 


.0132 


0082 


.0040 


.08715 


.0920 



WHOLESALE DATA AND FIGURES 79 

BUSINESS— FROM MEMBERS OF THE 

CERS' ASSOCIATION, Continued 

General 
average 
of each 
N. C. S.C. Okla. Tenn. Texas Va. item 

.0012 .001 .0022 00130 0028 

.0081 .0120 .00288 .00217 .00115 .0052 .00428 



.00385 ... 
.0003 ... 


.. .00125 




.00177 
.0004 




.00135 
.00018 


.0003 ... 







.00102 




.00073 


.0003 ... 


,.. .00625 




.0001 




.00171 
.00001 


.0025 .., 


... .00665 


.00645 


.00903 


.0050 


.00649 


.0078 .., 


... .0108 


.0070 


.0146 


.0025 


.0088 


.0075 ... 


... .0046 


.0010 


.00698 


.0037 


.0043 



0507 .07909 .07445 .09272 .0700 .07462 



THE AVERAGE LIFE OF CONCERNS 



MANUFACTURING 



Furniture 

Flour and grist milk 

Iron works 

Printing 



Lumber and timber. 
Boots and shoes 



_6.5 years 

-10.7 " 

_8.6 " 

_6.7 " 

.7.0 " 

-7.5 " 

_7.5 " 



Cigars and tobacco 

Average for these 14 leading lines 
Average for 213 other lines 



Hosiery and knit goods 10.0 year* 

Creamery goods 5.0 ** 

Brass, bronze, and copper_5.4 ** 

Clothing 9.2 " 

Drugs 5.3 " 

Automobiles 5,0 " 

Carriages and wagons 7.0 ". 



. 7.2 years 
7,0 " 



General average for manufacturing concerns 7.0 



WHOLESALE 



Bakery goods 

Boots and shoes. 
Butter and eggs_ 



.6.6 years 



_10.0 

5.3 

Cigars and tobacco 6.5 

Clothing 6.6 

Confectionery 9.2 

Dry-goods 7.5 

Flour and feed 7.6 



Fruits 

Groceries- 
Hardware. 

Lumber 

Meats 



Paints, oils and glass. 

Paper 

Produce 



> 6,2 years 

.10.9 •• 

.8.5 *« 

.7,4 " 

.6,5 ** 

_6.1 ** 

_8„5 «• 

_7^ '* 



General average for wholesale concerns. 



7.5 years 



RETAIL 



Groceries- 
Hardware. 



. 7.1 years 
.7.9 " 



Paints and wall paper_6.7 

D rugs 7.8 

Books and stationery 6.9 



Jewelry — 
Dry-goods - 
Clothing — 



Boots and shoes. 
Furniture 



. 7.2 years 
.6.9 " 
.6.4 " 
.7,4 •* 

.6.3 •» 



General average for retail concerns. 



.7,1 years 



Figure 26: This chart provides a summary of the average length of 
life of the manufacturing, wholesale, and retail concerns that continued 
in business less than 30 years. It is interesting to compare the length of 
the "lives" of concerns selling the same line in these classes of business. 

80 



HOW FAST SIX "GENERATIONS'OF WHOLESALE FRUIT CONCERNS DIED 


COMPANY 


1891 


1896 


1901 


1906 


1911 


1916 


DEATH RECORD 


1 

2 
3 
4 

5 














First 'feneration' 

80% died witltln. 

5 years 


















6 
7 
8 
9 

10 
11 
12 
13 














Second IS^neration" 

75% died within 

5 years 




























14 
IS 
16 
17 
18 
19 
20 
21 
22 














Third "Soneration" 

55% died within 

9 years 




































23 
24 
25 
26 














Fourth "GeneraMon" 

50% died within 

5 years 
















27 
28 
29 
30 
31 
32 
33 
34 














Firth "Generation" 

62% died within 

5 years 
























35 
36 
37 
38 
39 














Sixth "Generation" 
No deaths yet 













Figure 27: Some idea of the average length of life of wholesale con- 
cerns in one line may be gained from the chart reproduced here. Note 
that only four of the 26 concerns that started in business prior to 1905 
were stUl in existence in 1916. Six five-year "generations" are shown. 



81 



82 GRAPHIC SALES ANALYSIS 

DEATH RATES BY FIVE-YEAR ''GENERATIONS" 

FOR 16 WHOLESALE LINES 

Percentage of total concerns in business which died within 

each five-year period 

Line 1891 1896 1901 1906 1911 

Bakery goods 100% 60% 25% 

Boots and shoes 60% 

Butter and eggs 100% 22% 80% 66% 

Cigars and tobacco.. 50% 100% 60% 60% 50% 

Clothing 50% .... 33%, 

Confectionery 33% 60% 

Dry goods 50% 100% 

Flourandfeed 58% 66%, 25% 

Fruits 60% 75% 55% 50% 62% 

Groceries 16% 66% 100%, 50% 50% 

Hardware 50% .... 25%, .... 100% 

Lumber 40%, 55% 42% 50% 

Meats 66% .... 100% 66% 

Paints, oils, and 

glass 100% 33% .... 62% 100% 

Paper 33%, 75% 

Produce 80% 80% 

DEATH RATE FOR 28 WHOLESALE LINES 
This table shows the death rate by generations in the 16 
lines of wholesale concerns that were investigated by the 
Bureau of Business Standards. 

(The rate is given as the percentage of failures to the total 
concerns in business during a period of 30 years) 

Line Rate 

1. Bakery goods 30.0% 

2. Books and stationery 70.0% 

3. Boots and shoes 50.0% 

4. Butter and eggs 70.7% 

5. Carpets and oilcloths 50 . 0% 

6. Cigars and tobacco 79 . 1% 

7. Clothing 37.5% 

8. Confectionery 41.1% 

9. Crockery 50.0% 

10. Drugs 42.8% 

11. Dry goods 33.3% 



Wholesalers | 


Unes 


1888-1890 


1585 


1900 


^1905 


1910 


1915 


Bakery Goods and Confectionory 

Company No. 1 
























Confedwrwy and Fruite 


Company No. 1 
Company No. 2 









. 








Ciflars 


Company No. 1 
Company No. 2 








__ Signifies Dealers in Business 
between 1886 a^d 1890 

« » Signifies Dealers in Business 
between 1895 and 1900 


- 


Coal 


Company No. 1 




__^_„ 




Cofnmis«k>n Goods 


Company No. » 
Company No. 2 
Company No. 3 












. 












Creamery Supp»«s 


Company No. 1 
Company No. 2 








- 






""""""" 


■ "" "" 






Dry Goods 


Company No. \ 


















Orugs 


Company No. 1 





















Fruits 


Company No. 1 






....— 


_ 




Groceries 


Company No. 1 
Company No. 2 




• 
















1 .. . 














Company No. 1 




















Hardware 


Company No. 1 


























Notions 


Company No- 1 
























i 



Figure 28: Seven wholesale or jobbing houses were in business in one 
town in 1886. Only two existed in 1915, and one of these, although it is 
atill in business, is now a retail store instead of a wholesale concern. 



The Superior Buying Chart 

For Spring and Summer Season 


FaMc: 


Cotton Number* 




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Figure 29: Investigation indicates that the chief cause of retail dry 
goods failures is overbuying. One concern uses this chart, showing 
which of its lines are selling best, as a guide to buying for retailers. 

83 



84 GRAPHIC SALES ANALYSIS 

DEATH RATE FOR 28 WHOLESALE LINES, Continued 

Line Rate 

12. Flour and feed 55.5% 

13. Fruits 69.2% 

14. Furniture 46.6% 

15. Groceries 68.7% 

16. Hardware 70.0% 

17. Hay and straw 70.0% 

18. Lumber 58.4% 

19. Meats 71.4% 

20. Men's furnishings 16.6% 

21. Millinery 50.0% 

22. Optical goods 25.0% 

23. Oysters, fish, and game 75.0% 

24. Paints, oils, and glass 68.4% 

25. Paper 50.0% 

26. Produce 58.3% 

27. Tea, coffee, and spices 50. 0% 

28. WaU paper 25.0% 

Death rate for 492 wholesale concerns in 28 lines 51 . 0% 

WHAT CHANCE OF LIFE HAS A 
WHOLESALE CONCERN? 

Chances in 10 to live 
Line 10 Years 15 Years : 

Rakery goods 6.2 3.7 

Boots and shoes 7.1 5.5 

Butter and eggs 1.6 0.8 

Cigars and tobacco 3.5 2.5 

Clothing 6.6 6.6 

Confectionery 6.3 5.4 

Dry goods 7.5 5.0 

Flour and feed 4.7 3.1 

Fruits 3.9 2.1 

Groceries 5.8 5.0 

Hardware 7.5 3.7 

Lumber 5.3 3.2 

Meats 3.3 1.6 

Paints, oils, and glass 4.0 3.3 

Paper 8.8 7.7 

Produce 5.7 4.3 



PART III 

RETAIL DATA AND FIGURES TO 
HELP YOU CHECK DISTRIB- 
UTIVE EXPENSES 



PART III 

RETAIL DATA AND FIGURES TO HELP YOU 
CHECK DISTRIBUTIVE EXPENSES 

A RETAILER of men's furnishings in an Indiana 
town was rescued from a discouraging situation 
by taking a traveling salesman into his confi- 
dence. ''My sales were $29,000 last year — but after 
taking out $35 a week for my work, I had left only 
about $200 net," he explained. 

The manufacturer had given his selling force rough 
cost averages for clothing stores and had instructed 
them to protect future business by helping storekeepers 
who could not "spot" the expenses which drive their 
costs too high. The salesman offered to classify the 
retailer's expenditures. "You're too high on your 
selling expense," he declared, after figuring out per- 
centages for the more important items. "The sales 
were $29,030.19 and you paid out, including what you 
drew yourself, $3,556.57 for wages. That's exactly 
12.25% of your sales, and it should be about 10. On 
that one item alone you're $600 above the average." 

"Your rent is hauling you into bankruptcy," said 
another manufacturer's representative to a retailer 
whose cry for help he had answered. "You were 
making a go of it, so you got excited and rented this 
expensive place — a beautiful shop, but way over the 
heads of your trade." 

Rapid work by the merchant saved the day. He sold 
the lease at a price which paid up rent in arrears, and 
left a balance which more than covered moving ex- 

87 



88 GRAPHIC SALES ANALYSIS 

penses. A new store of half the size, and at a much 
lower rental, provided ample space for a normal stock, 
and brought operating expenses down around the gen- 
eral average for the line. 

Countless other similar incidents show how helpful 
it is to a sales manager or salesman to have a working 
knowledge of cost-of -doing-business figures for the lines 
he calls on. You cannot imagine, for example, com- 
peting manufacturers working readily into the good 
graces of the two merchants just mentioned. Service 
of that sort strengthens the bonds of good will between 
a merchant and the manufacturer who helps him. 

By themselves, figures do not mean much, true 
enough. But when a merchant can find the weak 
points in his own merchandising structure simply by 
checking his own figures against reliable standards, 
those standards give him invaluable service. 

Many progressive manufacturers feel that they have 
engaged in no more profitable efforts than the work 
they have done in teaching retailers the value of 
accurate figures. And that has meant that they them- 
selves must know all about their subjects 



RETAIL DATA AND FIGURES 

For the manufacturer considering a campaign in the 
national market, the following list of retail dealers may be 
suggestive of profitable distributive channels. 

Analyzed in connection with the tables on pages 94 and 
95, it may easily be of value in showing the tendencies 
toward increase or decrease in the number of dealers in 
various lines. Close examination of lists like these is nearly 
always interesting and instructive. 



RETAIL DEALERS IN THE UNITED STATES 

(From R. G. Dun and Company's list as compiled by the 

Rapid Addressing Machine Company) 

Agricultural implements 15,912 

Aiimals, birds, and goldfish, 420 

Art stores and pictures 1,900 

Automobiles 10,200 

Bakers. 25,788 

Bicycles 5,013 

Booksellers and stationers 11,954 

Booksellers and stationers (second-hand) 108 

Boots and shoes 20,104 

Butchers and meat markets 62,798 

Carpets 19,316 

Cattle dealers and shippers 20,100 

China, crockery and glassware 2,861 

Cigars and tobacco 40,555 

Cloaks and suits 1,988 

Clothing 22,713 

Coffee, tea, and spice 3,764 

Confectioners 35,423 

Department stores 1,752 

Drugs 43,239 

Dry goods 30,787 

Electrical supplies 3,272 

89 



90 GRAPHIC SALES ANALYSIS 

RETAIL DEALERS IN THE UNITED STATES 
(Continued) 

Fancy goods and notions (exclusive) 3,759 

Feed, flour, and grain 19,839 

Fishing tackle 3,885 

Five-and-ten-cent stores (independent) 1,054 

Florists 8,482 

Fruit 10,087 

Furs (raw) 305 

Fur garments 2,334 

Furniture 16,131 

Furniture (second-hand) 2,175 

Gas and electric fixtures 2,476 

General stores 144,933 

Glass, oils, and paint 29,533 

Grain 16,783 

Grocers 172,043 

Guns 3,885 

Hair goods 1,037 

Hardware 20,881 

Harness and saddlery 20,084 

Hats and caps 16,240 

Hides 1,528 

Ice 5,429 

Instahnent houses 1,488 

Japanese and Chinese goods 413 

Jewelers. 22,025 

Junk 6,213 

Laces and embroideries 384 

Lumber 29,669 

Mail-order houses 1,304 

Men's furnishings (exclusive) 12,387 

Milk 11,092 

Milliners 26,843 

Musical instruments 6,185 

Notions and toys 6,892 

Nuts 138 

Oysters (dealers and shippers) 1,222 

Pianos and organs 8,040 

Provisions 1,221 

Real estate 70,491 

Rubber scrap 31 



RETAIL DATA AND FIGURES 91 

RETAIL DEALERS IN THE UNITED STATES 
(Continued) 

Sewing machines 2,102 

Sporting goods 2,410 

Stamps and coins 129 

Stoves 22,177 

Tallow and pelts 1,528 

Trunks 712 

Typewriters and supplies 810 

Undertakers 17,808 

Wool 767 

Notice these figures on dealers by lines — 1917 in com- 
parison with 1913 as shown in the tables on pages 89 and 90. 
You find few increases, and a very marked falling off in some 
lines. It may be easy to explain the decreases by the grow- 
ing economic pressure of recent years. 

One of the greatest developments in the retail field within 
recent years is the chain-store idea. In 1914 " Printer ^s 
Ink'^ estimated that there were more than 2,000 chain-store 
systems in operation in the United States and that in these 
systems there were in excess of 25,000 stores. Present 
estimates range from 40,000 to 50,000 stores. It may be 
noted that the first chain-store system was started as early 
as 1859. The second followed 20 years later. The move- 
ment did not gain any marked proportions until along about 
1900. Since that time it has made rapid strides until to- 
day it is a typical modern factor in distribution of merchan- 
dise. It is no longer regarded as an experiment and its 
economic methods of buying and of distribution will no doubt 
be an increased factor of contention in the future. 

TOTAL NUMBER OF RETAIL DEALERS IN ALL 
LINES IN THE UNITED STATES 

Number in business 

Grocers 172,007 

Plumbers, steam- and gas-fitters 23,501 

Men's furnishings 5,582 

Lumber 29,655 

Hardware 30,446 



92 GRAPHIC SALES ANALYSIS 

TOTAL NUMBER OF RETAIL DEALERS IN ALL LINES 
IN THE UNITED STATES, Continued 

Number in business 

General stores 61,953 

Furniture 16,121 

Flour and feed 14,443 

Dry goods 32,128 

Drugs 49,939 

Department stores 1,752 

Clothing 22,737 

Boots and shoes 20,091 

Banks and bankers 27,030 

Agricultural implements 15,917 

Automobiles 27,702 

Garages, supply and repair stations 45,154 

Any manufacturer who sells to retailers will find these 
figures of value. Practically every manufacturer whose 
goods are sold over retail counters realizes the necessity for 
training dealers, and this table gives an interesting indication 
of the general problem of the individual retailer. Certainly, 
effective help for retailers starts with a clear understanding 
of the problems they have to solve. 

PER CAPITA FIGURES BY LINES 
(Based on an estimated population of 105,000,000) 

(Retailers) 

1 concern 

to following 

number of 

persons 

Grocers 610 

Plumbers, steam- and gas-fitters 4,468 

Men's furnishing stores 18,810 

Lumber dealers 3,539 

Hardware dealers 3,448 

General stores 1,694 

Furniture stores 6,513 

Flour and feed stores 7,270 

Dry goods stores 3,268 



RETAIL DATA AND FIGURES 



93 



PER CAPITA FIGURES BY LINES, Continued 

1 concern 

to following 

number of 

persons 

Drug stores 2,102 

Department stores 59,931 

Clothing dealers 4,614 

Boot and shoe dealers 5,226 

Banks and bankers 3,885 

Agricultural implement dealers 6,597 

Automobile dealers 3,790 

Garages, supply and repair stations 2,325 



It is interesting to study the probable effect upon the 
figures of the next two or three census reports, produced by 
the war and the period of reconstruction. There are many 
lines of business which undoubtedly will be seriously affected. 
And business men in almost any line surely may profit from 
a knowledge of larger trade tendencies. 



RATIOS OF MERCHANTS TO POPULATION 

Number of 

Number of persons in 

Number of merchants trade and 

merchants per 1,000 of transporta- 

per 1,000 of all gainfully tion per 1,000 

total popu- employed in of all gainfully 

Year lation all industries employed 

1850 7.51 27.37 109.20 

1860......... 8.52 29.03 97.38 

1870 9.27 27.56 99.50 

1880.... 9.55 28.00 107.60 

1890 11.40 29.65 146.29 

1900 10.97 28.66 163.96 

1910 10.92 26.30 199.28 

(''Merchants" include both wholesale and retail merchants. 
Figures are from ''Economics of Retailing'' and are based 
on the thirteenth United States census. No separate classi- 
fication of wholesale dealers appears in census before 1890). 



94 GRAPHIC SALES ANALYSIS 

To locate territories where retail competition is keenest, 
and where it is not so strong; to note from time to time what 
states or groups of states are showing the swiftest commercial 
development in certain lines — these are two of the benefits 

NUMBER OF CONCERNS IN RETAIL 



States 


i 2 


a 










1 


^ by ^ 
Groups cj 

2 

a 


II 


02 'to 

si 






1 

O 


1 


1 

o 


Group 1 
















Maine 1,812 


227 


45 


303 


242 


522 


139 


109 


N. H. 822 


173 


22 


492 


100 


249 


91 


81 


Vt. 581 


115 


12 


317 


152 


262 


81 


138 


Mass. 8,799 


1,556 


244 


609 


691 


305 


447 


452 


R. L 1,428 


275 


28 


93 


76 


58 


58 


26 


Conn. 2,859 


530 


59 


206 


169 


238 


194 


217 


Group 2 
















N.Y. 20,909 


4,756 


968 


1,882 


2,160 


1,943 


1,238 


1,327 


N.J. 8,322 


1,721 


221 


673 


660 


486 


234 


140 


Pa. 15,980 


2,733 


674 


1,687 


1,971 


4,172 


1,026 


1,394 


Group 3 
















Ohio 10,233 


1,209 


320 


1,447 


1,919 


1,831 


854 


1,134 


Ind. 6,907 


593 


126 


816 


1,268 


1,461 


620 


721 


111. 12,647 


1,440 


453 


1,920 


2,387 


2,528 


1,097 


1,704 


Mich. 4,012 


665 


116 


1,068 


1,151 


1,128 


551 


647 


Wis. 3,259 


403 


136 


1,022 


1,072 


1,686 


615 


415 


Group 4 
















Minn. 2,223 


312 


98 


1,299 


1,166 


1,613 


523 


451 


Iowa 2,761 


413 


60 


1,707 


1,792 


1,881 


743 


299 


Mo. 6,432 


521 


187 


1,167 


1,438 


2,710 


701 


651 


N. D. 263 


58 


10 


788 


629 


811 


209 


147 


S. D. 257 


94 


16 


610 


558 


761 


208 


111 


Neb. 1,168 


185 


65 


875 


1,053 


1,460 


520 


280 


Kan. 2,503 


239 


69 


1,158 


1,327 


1,501 


484 


684 



RETAIL DATA AND FIGURES 95 

which may be derived from the figures given here and on the 
two following pages. Used in conjunction with other 
tables in this group, the chart may well prove suggestive of 
more effective methods for organizing sales activities. 

LINES BY STATES (Dun's) 







1 




1 




g| 


iles 

supply 
r 


S) 


1 




to 

'•s 


1- 


^1 


5§ 


omob 

ages, 

repai 

ions 

al 


>» 




Cu 


i— \ 


o 


iU fl 


'^ cu 


-^ hSTi -^ -t^ 


p 


P 






o 


mJ 




<1 O §^ H 


484 


460 


14 


413 


283 


181 


85 


353 555 6,227 


274 


235 


2 


205 


207 


120 


17 


187 326 36,03 


166 


190 


3 


158 


131 


105 


27 


175 305 2,918 


1,600 1,635 


93 1,027 


776 


456 


45 


816 1,675 21,226 


203 


290 


12 


94 


100 


66 


5 


97 274 3,183 


514 


610 


28 


370 


275 


219 


35 


464 851 7,838 



3,389 4,110 157 1,852 1,793 1,120 574 2,023 4,064 54,265 
2,027 1,125 50 583 545 347 103 703 1,468 19,408 
2,972 3,450 187 2,177 1,814 1,401 601 1,831 3,082 47,152 



1,698 2,050 117 1,349 1,532 1,168 1,002 1,829 2,798 32,490 

914 1,865 125 781 751 899 908 1,002 1,450 21,207 

1,959 3,850 119 1,620 2,279 1,605 1,566 1,931 3,063 42,168 

1,302 1,655 85 1,044 1,096 795 880 971 1,594 18,760 

638 995 49 648 617 734 1,002 1,085 1,508 15,784 



522 1,048 1,070 1,101 1,547 14,882 
742 1,670 1,404 1,681 2,389 20,683 
839 1,372 720 804 1,387 23,676 
81 745 731 521 705 6,362 
112 627 551 446 636 5,684 
396 942 916 856 1,198 11,373 
428 1,418 94 495 341 1,092 892 996 1,562 15,283 



357 895 


52 


605 


494 1,800 


70 


777 


1,418 2,530 


38 


761 


37 463 


18 


146 


73 430 


15 


179 


202 910 


18 


329 



GRAPHIC SALES ANALYSIS 



NUMBER OF CONCERNS IN RETAIL 



States 
Groups 


(-t 


£2 

3 M 


1 





1 


1 


urniture 

lour and 
ed 




O 


s s 


^ 


w 


O 


fe ^^ 


Group 5 














Delaware 


612 


53 


15 


88 


58 


122 


35 41 


Maryland 


3,512 


561 


74 


387 


299 


862 


134 161 


Dist. Col. 


1,407 


161 


36 


26 


54 




42 50 


Virginia 


3,602 


249 


61 


915 


346 


2,352 


283 123 


W.Va. 


1,441 


191 


46 


330 


242 


1,727 


192 128 



N. C. 2,111 108 44 369 309 2,545 245 42 

S. C. 1,693 78 19 142 207 1,722 209 41 

Georgia 4,121 165 42 240 361 2,764 344 189 

Florida 936 79 56 172 207 745 159 36 



Group 6 
















Kentucky 4,283 


250 


95 


329 


531 


2,288 


273 


180 


Tenn. 3,885 


157 


43 


374 


221 


1,839 


291 


160 


Alabama 2,408 


101 


51 


236 


265 


1,950 


234 


68 


Miss. 1,760 


56 


27 


246 


206 


2,332 


138 


41 


Group 7 
















Arkansas 2,271 


100 


30 


421 


334 


1,619 


202 


105 


Louisiana 2,781 


137 


32 


219 


182 


1,481 


119 


120 


Okla. 2,704 


187 


80 


914 


880 


1,332 


475 


275 


Texas 5,076 


271 


183 


1,217 


1,015 


3,297 


854 


555 


Group 8 
















Monta.na 261 


98 


45 


248 


162 


455 


72 


59 


Idaho 225 


72 


22 


202 


183 


385 


85 


91 


Wyoming 101 


41 


20 


79 


75 


222 


36 


17 


Colorado 1,903 


262 


65 


412 


340 


660 


207 


27 


N. Mex. 213 


42 


10 


116 


81 


445 


50 


32 


Arizona 179 


49 


14 


64 


29 


225 


27 


18 


mah 515 


102 


9 


126 


54 


318 


67 


66 


Nevada 118 


27 


18 


44 


36 


132 


16 


15 


Group 9 
















Wash. 1,417 


317 


82 


408 


519 


812 


259 


238 


Oregon 1,113 


282 


76 


434 


293 


594 


198 


148 


Calif. 7,182 


1,087 


358 


758 


876 


1,122 


342 


289 



RETAIL DATA AND FIGURES 97 



LINES 


1 BY STATES, 


Continued 










xn 




1 






73 


g^ 


02 


1 




o 


a 
p 






1 
o 


c3 cQ 

^1 


5S 

o a? 

*S^ 'Si 


1 


rages, 
i repai 
.tions 






(-1 


Q 


o 






:3 
< 


=3 ? «5 


^ 


88 


115 


5 


64 


42 


49 


19 


74 


108 


1,588 


448 


550 


34 


259 


233 


249 


157 


230 


420 


8,570 


104 


215 


11 


87 


53 


35 


8 


291 


151 


2,731 


501 


660 


18 


430 


159 


408 


167 


66 


456 


10,796 


209 


400 


25 


318 


164 


303 


42 


227 


302 


6,287 


524 


800 


17 


292 


194 


451 


32 


331 


480 


8,894 


404 


487 


3 


272 


149 


363 


10 


211 


316 


6,326 


822 


1,240 


22 


436 


235 


802 


40 


392 


651 


12,866 


485 


600 


8 


169 


134 


232 


1 


254 


474 


4,747 


734 


1,058 


30 


372 


288 


599 


179 


303 


453 


12,245 


613 


765 


19 


399 


404 


523 


125 


227 


366 


10,411 


420 


942 


14 


197 


154 


350 


11 


185 


299 


7,885 


335 


725 


5 


130 


103 


366 


14 


133 


197 


6,814 



364 1,086 9 175 91 468 19 214 323 7,831 

440 800 9 237 135 260 131 170 251 7,504 

605 1,320 10 398 236 926 407 459 719 11,927 

1,774 2,937 13 621 254 1,452 337 877 1,464 22,197 



82 


295 


9 


149 


105 


224 


99 


266 


385 


3,014 


99 


272 


10 


130 


82 


193 


117 


177 


24 


2,369 


48 


91 





53 


47 


94 


19 


88 


137 


1,168 


538 


648 


27 


272 


222 


322 


145 


356 


556 


6,762 


61 


141 


4 


34 


34 


96 


21 


95 


154 


1,629 


66 


94 


1 


79 


51 


66 


16 


124 


199 


1,311 


73 


178 


6 


116 


49 


102 


86 


111 


174 


2,152 


29 


55 


1 


39 


35 


33 


9 


60 


103 


770 



330 720 23 437 267 364 160 418 686 7,457 
211 465 12 191 206 249 133 229 412 5,246 
772 1,390 61 768 733 739 279 1,262 2,457 20,475 



98 GRAPHIC SALES ANALYSIS 

Many a retailer understands selling, yet is not an able 
merchant simply because other extremely important phases 
of retail management do not interest him. Perhaps he even 
doubts the value of obtaining accurate knowledge about his 
costs of doing business — ^he may look upon costs as so much 
useless *'red tape.'' The following table presents a graphic 
and unusual statement based on the latest available census, 
showing where a good portion of the retailer's money goes. 
Note the number of persons employed as salespeople. 

PERSONS ENGAGED IN RETAILING 
Retail merchants and dealers, total 1,1^,029 

Agricultural implements 8,518 

Automobiles 4,597 

Books 3,118 

Boots and shoes 19,346 

Butchers 124,048 

Candy and confectionery 29,538 

Cigars and tobacco 17,728 

Clothing and men's furnishings. . 35,273 

Coal and wood 24,466 

Department stores 8,970 

Drugs and medicines 67,575 

Dry goods, fancy goods, notions. 65,283 
Five-and-ten-cent and variety ... 4,331 

Furniture 22,209 

General stores 88,059 

Groceries 195,432 

Hardware stores, cutlery 39,663 

Harness and saddlery 7,541 

Hucksters and pedlers 80,415 

Jewelry 29,962 

Lumber 26,485 

Music and musical instruments. . 5,222 

News dealers 7,075 

Oil, paint, wall paper 6,818 

Opticians 6,284 

Produce and provisions 29,639 

Rubber goods 493 

Cashiers in stores 28,500 

Clerks in stores 387,183 



RETAIL TRADE BY SECTIONS 




Dry Goods and Womens' 

Ready-to-Wear - Showing 

Population, Volume of 

Trade and Percentage 

of each Section to 

United States Total 



Form 30 : This map from "Selling Forces" indicates retail tendencies by 
sections. Population, sales in women's ready-to-wear and dry goods, 
and the percetitage of each section's volume to the total is shown. 



A8TAZL TRAOt BT S B C T Z If 8 
Dry soods and voiNn'a rMdr-t»-««ar 



Hm tMTltorlal dlrislon Is aade aocording to Vm retail 
ctiaraoterlstlos of th« various Motions of tti« oouotr; 



1. 
2. 

S. 

4. 

8. 

6. 

T. 

8. 

9. 
10. 
U. 
U. 
IS. 
14. 
IS. 

le. 



Saotlon Population 

Motropolltan ---•--.--- 16,097,000 

Hortijom Now EBgland and MortlrerU N. Y. 1,854.523 

Central Raw York -------- 3.000.808 

•oBtern Pennsylvania and Best Virginia 5,602,119 

Vlrglnia-Uorth Carolina ----- 4,885,443 

Cotton Belt --------- 5,526,335 

Kentucky and Tennessee ------ 3,724.694 

Middle Ifest -_-_----_ 20,241,359 

Morthom Blaconsin and Klohigan - - - 1.106,741 

Klssourl and Arkansas ------ 4,217,784 

Texas and OM-ahona. ------- 3,853,107 

Prairie States -------- 5.483.697 

Mountain States -------- 1.998.522 

Arizona and Now t'exloo ------ 526,655 

Washington and Oregon ------ 1,794.095 

California ---------- 2.365.S49 

Total United States ------ 82.278.441* 

*BRolusive of negroes 



Voloae of Retail 'PBr>- 

Beslness. Dry Goods oentAs* 

and ffoaen's o/ U.S. 

Ready-to-wear Total 



8439.862.955 


21 


41.892,130 


2 


73.310,433 


3« 


146.S22.000 


7 


115,202.202 


5K 


146,620,000 


7 


83,783,420 


4 


5?,3.6'i6,S75 


25 


20.945,855 


1 


104,729,275 


5 


94,£56,M7 


4!4 


146.620.055 


7 


41.891.000 


2 


10,472.928 


% 


41.892,000 


2 


62,S37.56'5 


3 


«2. 094, 535, 500 


100 



Figure 31: This table shows where the bulk of buying of women's 
ready-to-wear is done. This information from "Selling Forces" may 
indicate new markets where it is safest to exploit goods of this type. 

99 



200 GRAPHIC SALES ANALYSIS 

PERSONS ENGAGED IN RETAILING, Continued 

Bundle and cash boys and girls 10,866 

Decorators, drapers, window dressers 5,341 

Delivery men 205,589 

Demonstrators 4,380 

Elevator tenders 3,075 

Store laborers 68,093 

Meat cutters 15,405 

Salesmen and saleswomen 875,180 

Scrubbers and sweepers 276 

Here is a slightly different analysis of the same concerns 
listed in the tables on page 102. By comparing these tables 
it is possible to arrive at interesting and helpful conclusions. 

GENERAL SUMMARY OF TRADING CONCERNS 
IN MASSACHUSETTS* 

Number of establishments 29,045 

Dealing in raw materials. . . 1,682 

Dealing in food products . . 14,224 

Dealing in manufactured 

goods 13,139 

Total capital invested $ 287,966,456 

Raw materials $ 42,897,034 

Food products 71,708,282 

Manufactured goods 173,361,140 

Value of goods sold $1,384,161,383 

Raw materials $270,159,171 

Food products 448,002,405 

Manufactured goods 665,999,807 

Total number of wage earners 129,129 

Males 90,332 

Females 38,797 

Total number of salary earners 15,330 

Males 13,031 

Females 2,299 

Retail stores— total 24,522 

Raw materials 1,038 

Food Products. 12,441 

Manufactured goods 11,043 

•From "The Eoonomics of Retailing," by Paul H. Nystrom 



Comparisan by Decades of the Number of Merchants, of Commercial Travelers, 
and of Total Persons in Trade and Transportation, with the Total Value of 
Manufactures and Imports 


22 

21 

20 

19 

18 

17 

16 

15 

14 

13 

12 

11 

10 

9 

8 

7 

6 

5 

4 

3 

2 

1 
















79 












1 


21 

20 

19 

18 

17 

16 

15 

14 

13 

12 

11 

10 

9 

8 

7 

6 

5 

4 

3 

2 

1 


10 












i 
























1 












1 












! 












1 ; 

, 1 












1 : 












/ ! 












1 
1 










/ 


/'/ 










/ 


JC' 








/ 


^ 


^t-— ^^ 








/ 


/// 










/ 


/'' 










/ / 


* 










''^'' 












// 












/ 

/ 








^/^^^ 


^' 


/ 






"^ _,,00' " 




• 
















.*^ 








18 


50 1860 1870 1880 1890 1800 18 

Value of Manufactures and Imports - Unit = $1,000,000,000 
Number of Commercial Travelers - Unit = 10.000 
Employed in Trade and Transportation - Unit = 500,000 
Number of Merchants - Unit = 100.000 



Figure 32: An interesting comparison by decades of the number of 
merchants, of commercial travelers, and of total persons in trade and 
transportation, with the total value of manufactiires and imports, is 
reproduced from "The Economics of Retailing," by Paul H. Nystrom. 

101 



102 



GRAPHIC SALES ANALYSIS 



In the table presented below and on the upper portion of 
the opposite page, the total amount of goods manufactured 
and imported is compared with the total population of the 
United States and with the total number of persons em- 

COMPARISON OF THE TOTAL AMOUNT OF GOODS 
POPULATION AND WITH TOTAL NUMBER 

Manufac- 
tured 

goods Imports Total Number 

(000,000 (000,000 (000,000 of 

omitted) omitted) omitted) retailers 

1850 $1,109 $174 $1,193 174,000 

1860 1,886 331 2,217 268,000 

1870 3,386 418 3,804 358,000 

1880 5,370 446 5,816 479,000 

1890 9,372 745 10,117 691,000 

1900 13,000 697 13,697 833,000 

1910 20,672 1,312 21,984 1,004,000 



This table indicates about what ratio ought to prevail, 
normally, between the various classes of distributive agencies. 

CLASSIFICATION OF TRADING CONCERNS IN 
MASSACHUSETTS BY MANNER OF SELLING 

Value of 
Number Capital goods sold Wages Salaries 

RetaU. . .24,522 $120,065,311 $444,984,052 $849,075 78,206 

Whole- 
sale.... 3,315 109,952,787 510,016,634 359,150 152,492 

Jobbing. 480 16,777,443 81,017,798 56,926 32,924 

Commis- 
sion.... 570 24,255,758 253,670,922 48,048 29,711 

Export 
ing 12 237,500 2,492,083 389 627 

Import- 
ing 129 15,516,364 83,540,190 13,644 13,735 

Export- 
ing and 
import- 
ing 17 1,161,293 8,519,704 3,254 2,218 



RETAIL DATA AND FIGURES 



103 



ployed. Note that amounts represent millions — with the 
000,000 omitted. Analyses of this sort have infrequently 
pointed out to distributors weak spots in their marketing 
plans or have indicated the need of investigations. 

MANUFACTURED AND IMPORTED, WITH TOTAL 
OF PERSONS GAINFULLY EMPLOYED* 

Total 

number Total 

employed in Total popula- 

Number of trade and number tion 

commercial transporta- gainfully (000,000 

Year travelers tion employed omitted) 

1850 582,000 5,330,000 23 

1860 802,000 8,236,000 31 

1870 7,000 1,244,000 12,506,000 39 

1880 28,000 1,872,000 17,392,000 50 

1890 59,000 3,326,000 22,736,000 63 

1900 93,000 4,767,000 29,073,000 76 

1910 164,000 6,252,000 38,167,000 92 



The figures given in the following table indicate the per- 
centage cost of selling by departments in New York depart- 
ment stores. The percentages are based on total sales. It is 
interesting to compare retail selling costs on various lines of 
merchandise. Helping dealers cut down this item of expense 
is a subject worth study of any manufacturer. 



SELLING EXPENSE BY DEPARTMENTS IN 
NEW YORK DEPARTMENT STORES* 



1 


Aver- 


Actual 


Actual 






age for 


for 


for 






three 


one 


same 


Actual for 




stores 


store 


store 


same store 


Departments 




in 1912 


in 1913 


in 1914 


Books and sta- 










tionery 


9.0% 


9.5% 


9.4% 


11.4% 


Carpets, mat- 










tings, rugs. . . 


8.9% 


7.9% 


7.2% 


6.9% 



*From the Dry Goods Economist, as adapted by Paul H. Nystrom. 



104 



GRAPHIC SALES ANALYSIS 



SELLING EXPENSE BY DEPARTMENTS IN NEW 
YORK DEPARTMENT STORES, Continued 

Aver- Actual Actual 

age for for for 

three one same Actual for 

stores store store same store 

Departments in 1912 in 1913 in 1914 

China, glass- 
ware, lamps. . . 9.8% 11.1% 10.7% 11.6% 

Clothing (men's /6 . 6 Boys' 

andboys).... 8.9% 8.1%, 8.1% \9.4Men'3 

Corsets 5.8% 

Dress goods ... 9.8% 12.6% 9.0% 9 . 7% 

Furniture and 

bedding 8.0% 12.2% 9.9% 9.6% 

Furs 6.3% 6.7% 9.9% 8.5% 

Gloves 6.1% 5.7% 5.9% 5.8% 

Groceries 9.4%, 8.5% 8.5% 8.8% 

Handkerchiefs 6.6% 6.8% 7.6%, 6.9% 

Hosiery 6.0% 6.3% 6.0% 6.4% 

Infants' wear.. 7.3% 5.0% 4.9% 5.3% 

Jewelry, silver- 
ware, cutlery. . 9.4% 9.3% 9.2%, 10.0% 

Laces, embroid- 
eries, veilings. 8.2% 8.5% 8.1% 8.5% 

Leather goods. 6.4% 6.4% 6.9% 7.1% 

Millinery 8.7% 

Muslin under- 
wear 6.5%, 4.9% 5.4% 5.6% 

Neckwear 8.8% 8.5%, 8.3% 8.7% 

Notions and art 

embroidery... 9.4% 7.7% 8.0%, 8.6% 

Pictures 10.8% 10.8% 11.3% 11.7% 

Ribbons 9.4%, 7.4%, 6.2%, 8.8%, 

Sewing ma- 
chines 8.3%, 8.3% 12.3% 15.7%, 

Shoes 

(women's).... 9.7% 8.8% 9.0% 9.1% 

S i 1 k s a n d 

velvets 8.4% 8.4% 8.4% 8.4% 

Suits and coats 

(women's).... 8.0% 7.1% 7.0% fS.l Suits 

\7. 4 Coats 



I 



RETAIL DATA AND FIGURES 



105 



SELLING EXPENSE BY DEPARTMENTS IN NEW 

YORK DEPARTMENT STORES, Continued 

Aver- Actual Actual 

age for for for 

three one same Actual for 

stores store store same store 

Departments in 1912 in 1913 in 1914 

Suits (misses') . 7.7% 7.4% 7.7% 

Toilet goods, 
drugs, perfum- 
ery 7.8% 8.0% 7.8% 6.5% 

Toys 12.9% 13.1% 13.9% 13.9% 

Trimmings 8.4% 9.3% 9.3% 10.6% 

Umbrellas, par- 
asols, canes .. . 5.9% 4.7% 

Underwear 

(knit) 7.9% 6.2% 6.0% /6. 8 Men's 

\6.1 Women's 

Upholsteries... 9.5% 9.4% 10.0% 10.0% 

Waists and 

women's f6.7 Waists 

sweaters 7.7% 7.0% 6.8% \4 . 9 Sweaters 

Wash goods.... 10.3% 9.9%, 9.1%, 9.4% 

White goods, 

linens 7.6% 6.2% 5.7% 6.5% 

W' r a n n e r 8 

kimonas ' 8.7% 7.0% 7.1% 7,7% 



These tables, made up from reports obtained in a recent 
year, suggest the extent to which chain stores are becoming 
an independent distributive factor in several lines. The list 
of lines is growing very rapidly. 



CHAIN STORES BY LINES 

Line Chains Stores 

Grocery 500 8,000 

Tobacco 250 2,500 

News-stands 200 2,500 

Five-and-ten-cent, and so on 180 2,000 

Oil, gasoline, and so on 5 2,000 

Drug 200 1,400 



106 GRAPHIC SALES ANALYSIS 

Line, continued Chains Stores 

Restaurants 100 1,400 

Pianos and musical instruments 125 1,000 

Sewing machines 2 1,000 

Boots and shoes 50 700 

Automobile accessories 50 650 

Clothing 50 600 

Dairies 40 550 

Coal 40 500 

Miscellaneous, other lines 100 500 

Butchers 75 450 

Dyeing and cleaning 45 400 

Saloons 100 400 

Shoeblack stands 100 400 

Confectionery 40 315 

Lumber 50 300 

Laundries 45 275 

Theaters 15 260 

Dry goods, department stores, and so on 30 250 

Hats 25 250 

Jewelry 50 200 

Women's cloaks, suits, and so on 25 150 

Bakeries 25 125 

Banks 32 125 

Books. 1 100 

Furniture 16 100 

Hotels 10 100 

Men's furnishings 35 90 

Hardware 15 80 

Automobiles 10 70 

Florists 15 60 

Funeral directors 10 60 

Trunks and bags 15 55 

Sporting goods 3 53 

Ticket agents 8 52 

Penny arcades 10 50 

Plumbing 10 35 

Motor trucks. 5 35 

Stock feed 5 35 

Optical 8 30 

Phonographs 1 30 

Barbers 5 25 

Electric supplies 5 20 

Corsets 5 18 



RETAIL DATA AND FIGURES 



107 



Line, continued Chains 

Delicatessen 5 

Wall paper 5 

Gloves 3 

Furs 2 

Paper novelties 1 

Fountain pens 1 

Total 2,778 



Stores 

15 

15 

10 

6 



30,609 



GROCERIES 

Chain 

Total Chains stores 

Greater New York.. 13,513 17 680 

Chicago 7,510 10 130 

Philadelphia 5,200 9 1,262 

Boston 2,829 10 456 

TOBACCO 

Greater New York . . 2,394 9 439 

Philadelphia 2,350 5 45 

Chicago 1,100 9 172 

Boston 308 2 16 

DRUGS 

Greater New York.. 2,281 11 82 

Chicago 1,106 4 17 

Philadelphia 921 12 53 

Boston 314 6 34 

FIVE-AND-TEN-CENT STORES 

Greater New York.. 225 15 50 

Chicago 150 3 25 

Philadelphia 145 4 20 

Boston 32 2 7 



Indepen- 
dent 
stores 
12,833 
7,380 
3,938 
2,373 



1,955 

2,305 

928 

292 



2,199 

1,089 

868 

280 



175 

125 

125 

25 



ELEVEN YEARS IN RETAIL GROCERY TRADE, 
GREATER NEW YORK 

1903 1914 Increase Percent 

All stores 8,750 13,513 4,763 54 

Chain stores 215 985 770 360 



108 GRAPHIC SALES ANALYSIS 

The advantages to manufacturers of the figures in the 
tables following are apparent. They deal intimately 
with several of the most pertinent problems of retail 
management. They help an outsider to grasp the 
retail point of view, and for those manufacturers who 
see in the assistance they can give to retail dealers an 
opportunity to build good will, the retail point of view 
is practically a necessity. 

Figures are of little value in themselves. Yet just 
as soon as you have sets of figures which are in any 
way comparable, you have, the chances are, a key to 
some interesting facts. In a word, acciuate figures are 
a starting point rather than an end. 

Right here many retailers fall down, and it may be 
that one of the greatest helps manufacturers can give 
to retailers is in teaching them how to use figures. Too 
many retailers have installed cost-accounting systems, 
and then thrown them out again, mainly because they 
did not know what to do with the information supplied 
by their systems. 

To come back to ways by which manufacturers may 
use the figures presented here, investigation frequently 
has brought to light instances of manufacturers' sales- 
men pointing out to some of their retail customers 
ways and means for cutting down overhead and thereby 
increasing profits. Not a few of the stores involved 
were actually saved from financial difficulties and were 
put on sounder footings by means of advice furnished 
by manufacturers — advice built on study of just such 
figures as those which follow. 

Wages for selling apparently are comparatively low for 
grocery, furniture, and variety stores in proportion to sales. 
This is because these lines are characterized either by very 
frequent small sales or fairly numerous sales at a high average 
amount for each sale. Local conditions, of course, frequently 
vary these figures one way or the other. 



RETAIL DATA AND FIGURES 109 

AVERAGE PERCENTAGE FOR SALARIES OF 
SALESPEOPLE (System, February, 1914) 

Groceries 7 . 96% 

Furniture 8.73% 

Variety stores 8 . 86% 

Clothing 9.49% 

Dry goods 9.65% 

Hardware 10. 11% 

Shoes 10.51% 

Drugs 10.93% 

Jeweky 10.96% 

The number of times a retailer turns his stock is coming to 
be a widely accepted measure of his merchandising skill. 
Even so, many retailers fail to recognize the importance of 
average rate of turnover statistics for their own lines. 

The figures given below are averages applying exclusively 
to department stores, and were obtained by the National 
Dry Goods Association. 

Average number of 
turnovers obtained 

Line annually 

Candy 13.27 

Skirts and petticoats 7 . 22 

Millinery 6.63 

Coats, suits, and dresses 5.5 

Stoves, refrigerators, and cookers 5.45 

Shirtwaists 5 . 14 

Patterns 5 . 05 

Furs 4.55 

Children's wear 4 .45 

Corsets 4.43 

Toys and books 4 . 42 

Umbrellas 4.38 

Sewing machines 4 , 37 

Neckwear and handkerchiefs 4 . 26 

Wash goods 4 . 17 

Notions 3.97 

Linings 3 . 77 

White goods 3.76 

Hosiery 3.65 

Furniture 3.65 



Twnovers in Representative Lines 




Figiire 33: To pull what is considered a fair profit for these lines up 
the grade of the cost of doing business, requires on an average the num- 
ber of turnovers here represented by circles. Corsets, you will note, 
have tiie lowest percentage of profit and the highest rate of turnover. 

110 




Figure 34: These circles indicate turnovers and vary in size roughly 
according to relative net profits. When two sizes of circles appear for 
the same line, as in "dry goods" and "hardware," the smaller represents 
fractions of turnovers. This is also true of the chart shown in Figure 33. 

Ill 



112 GRAPHIC SALES ANALYSIS 



Average number of 
turnovers obtained 

Line, continued annually 

Jewelry, toilet goods, bags, and belts 3 . 45 

Linens 3.40 

Trunks and bags 3 . 39 

Hair goods 3 . 22 

Muslm underwear 3 . 20 

Table linen and towels 3 . 09 

Ribbons 3 . 01 

Gloves and veilings 2 . 96 

Silks 2.91 

Dress goods 2 . 90 

Knit underwear 2 . 89 

Wall paper and decorations 2 . 88 

Men's furnishings 2 . 73 

Boys* clothing 2. 56 

Men's clothing 2 . 53 

Laces 2.50 

Infants' wear 2.41 

Art goods and needlework 2 . 34 

Embroideries and trimmings 2 . 26 

Rugs, carpets, and linoleums 2.18 

Shoes and rubbers 2 . 18 

China, glass, and house furnishings 2 . 03 

Individual conditions vary the number of turns secured 
in specific stores. The standards given in this table there- 
fore require modification when local influences are unusual. 
The turns obtained in a large department store and in a 
country general store will differ because of the heavy buying 
power touched by the city store and its managers' skill. 
These turnover averages are from several large department 
stores and a score or more departmentalized concerns in 
country districts. 

Number of turns obtained 

annually : 
City depart- Country gen- 
Line ment stores eral stores 

Books 4 1.5 

Candy 15 9 

Clocks 2.5 1 



Percent- 
age 

42- 

40- 



CGMPARISONS OF AVERAGE PROFITS 



^^ Average Net Profits on Capital Invested. (Manufacturers) 
f^rm Average Net Profits. One Turnover (Retailers) 
p^ Average Costs of Doing Business (Retailers) Cash Discounts 
Included and Mark-Downs Deducted- 




Figure 35 : The average profits and costs of retailers and manufacturers 
compared here show that distributors must stand up for fair profits 
in order to secure for themselves gains equal to those of the manufacturer. 



How to Maintain Profits Against Rising Costs 

^^=r One Turnover 




18% Profit, _^S5*-,^S>^^ r-7:Srf-D5Sr===i>«»«'^-' 



Figure 36: This chart analyzes the tendency that dominates modem 
merchandising. Retailers now strive to equal with a number of small 
profits the single generous gain that could be taken in years gone by. 

113 



114 GRAPHIC SALES ANALYSIS 

Number of turns obtained 
annually: 

City depart- Country gen- 
Line, continued ment stores eral stores 

Embroideries 3.5 3 

Furs 5 3 

Infants' clothing 5 3 

Laces 4 2 

Linens 3.5 2 

Men'shats 7 4 

Pianos 9 4 

Ribbons 6 2 

Stationery 5 2 

Umbrellas and canes 11 3 

Trunks 5 1.5 

Veilings 5.5 2 

Wash goods and flannels 5 3.2 

National stock-turn averages from over 700 American 
stores were figured to give the averages for the 10 standard' 
types shown in this list. The turnovers are for the com- j 
plete stocks and have no reference to either the character 3J 
or the number of the lines carried. 

Average number of 
* turnovers obtained 

Type of store annually 

Grocery 10 

Department 7 

Variety goods 6 

Drug 4.5 

Dry goods 4 

Hardware 3.5 

Furniture 3 

Shoe 2.1 

Clothing 2 

Jewelry 1.5 

From the books of several hundred stores carrying depart- 
mentalized stocks, averages for 12 standard lines were 
obtained as shown in the table on page 116. 



age of 
Total 
Sales 

42- 



PROFTTS, COSTS and DISCOUNTS By Trades 



40- 



I I I I I n 



^^ Net Profits (One Turnover) 

^ Cash Discounts 

^\\\i Coste of Doing Buslnese 




Figure 37: It will be readily noted that the department store figures 
shown in this chart, which give net profits, costs, and discounts by 
trades, are unusual. This condition exists because in many large stores 
the cash discounts pay part of the costs and often all of the net profits. 

115 



116 GRAPHIC SALES ANALYSIS 

Average number of 
turnovers obtained 

Line annually 

Notions 9 

Corsets 8 

Women's ready-to-wear 6 

Wall paper 4.2 

Men's furnishings 4.2 

Underwear 4.1 

Hosiery 4 

Gloves 3.5 

Dress goods 3.2 

Silks 3.1 

Domestics 3 

Carpets 1.5 



PROFITS IN 60 LINES AND TRADES 
Each of the percentages assembled here gives gross prof- 
its for an actual line, store, or manufacturing plant. All 
the distributive channels are included. By combining the 
figures it is possible, in several instances, to obtain a rough 
estimate of the cost of getting certain lines from the factories 
to the consumers' doors. All percentages are based on 
total sales. 

TYPICAL GROSS PROFITS 

Per cent 

American Family Soap (at full price) 16 . 36 

Barrington Hall Coffee (at full price) 20 

Borden's Eagle Milk (at full price) 13.33 

Campbell's Soup (at full price) 25 

Chain grocery stores (three) (49.5% re- 
ported by the Association for Improving 

conditions of the Poor) 15 to 49 . 5 

Clothing stock (southern store) 20 (average) 

Collar stock (men's), New York City (cost 

of doing business, 29%) 26 

Cotton dress goods stock 32 to 41 

Cream of Wheat (at full price) 16 . 66 

Dr. Price's Baking Powder (at full price) . . 23 . 33 
Fels Naphtha Soap (at full price) 20 



RETAIL DATA AND FIGURES U7 

TYPICAL GROSS PROFITS, Continued 

Per cent 

Furniture store (operating cost, 31%) 49 

Grocery store (cost of doing business, 20%) 

(Sales, $101,877.00) 25 (average) 

Hat stock (men's) 39 (average) 

Hardware (large store) 33 . 33 (average) 

Hardware line (jobber made 17%) 31 

Hardware store (town of 2,000; cost of do- 
ing business, 25%) 37 . 5 (average) 

Instalment hardware line 62 

Ivory Soap (at full price) 20 

Kellogg's Toasted Corn Flakes (at full price) 22 . 33 
Large department store (seven year average) 24 . 5 

Malt Breakfast Food (at full price) 16 . 66 

Mail-order house (largest in the world) 25 (average) 

Meat line (No. 2 loin) 33.33 

Meat line (ribs) 40 

Meat line (500 lb. steer — cost 13}^c per lb. ; 

sold for U}4 to 16c per lb.) 12 

Neckwear stock (New York City — used as a 

*%ss leader") 26 

Pet Milk (at full price) 13.33 

Pillsbury's Best Breakfast Food (at full 

price) 16.66 

Quaker Oats (at full price) 21.7 

Ralston Breakfast Food (at full price) .... 16 . 66 
Ready-made clothing lines (Tariff Board) . . 33 . 33 
Restaurant menu (highest profits taken on 
salads and pastries; lowest on meats) .... to 300 

Royal Baking Powder (at full price) 20 . 84 

Rumford Baking Powder (at full price) ... 23 . 31 
Shredded Wheat Biscuits (at full price) ... 20 

Shoe store ($5— $6 lines at retail) 25 to 33 . 33 

Shoe store (S6 — $15 lines at retail) 45 (average) 

Shoe store ($4.50 shoes cost $2.40 and $2.65 ; 

$5.00 shoes cost $2.85 and $3.25) 40 (average) 

Syrup line (at full price) 18 

Uneeda Biscuits (at full price) 16.66 

Variety goods bargain basement 15 to 25 

Variety goods store (average cost 5c 
articles, 40c a doz.; average cost 25c 
articles, $2.00 a doz.) 25 to 33.33 



118 GRAPHIC SALES ANALYSIS 

TYPICAL NET PROFITS OF RETAIL STORES 

Per cent 

Wesson Salad Oil (at full price) 20 

Cash grocery 3 to 5 

Clothing stock (southern store) 4 

Commissary and general store 8 to 10 

Dry good stores (small town) 10 to 12 

Dry goods stores (large city) 5 to 7 

Furniture stock 18 

Grocery 4 to 5 

Hardware store (town of 5,000) 12 . 5 

Large department store (average for seven years) . . 3.1 
Mail-order houses (average three years; operating 

cost of largest concerns,15%) 6.8 

Variety goods store 10 to 12 

Variety goods bargain basement 5 to 10 

In the preceding table are given typical net proiSts for 12 
types of retail stores. You will readily note that stores 
such as groceries and large department stores, which ordi- 
narily have a more rapid rate of turnover, have the smallest 
net profit. This is in hne with the contention of many ex- 
perts that it is better business to take small profits and rapid 
turnovers than to rely on higher mark-ups. 

TYPICAL GROSS PROFITS OF LARGE 
DEPARTMENT STORES 

Per cent 

Art goods or needlework 28 

Blankets, comforters, pillows, and so on 27 

Cameras 26 

China or glassware 32 

Clocks and watches 28 

Colored dress goods 28 

Harness 31 

Infants' clothing 30 

Leather goods 32 

Linings 32 

Neckwear (women's) 29 

Notions 31 

Trimmings 28 

Upholstery 33 



PROFITS, COSTS, AND DISCOUNTS By Unes 




P6rC6nt3Q6 

of Total 
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Figure 38: This chart and the one given in Figure 37 show graphically 
the average profits, costs, and discounts, gathered by various organiza- 
tions and individual investigators, for the lines indicated. The three 
shades, dark, medium, and light, indicate profits, costs, and discounts. 

119 



120 GRAPHIC SALES ANALYSIS 

TYPICAL PROFITS AND COSTS BY TRADES 

These figures supply only net gains on sales, but the profits 
on the investments may easily be figured from the data 
given. The method used covers roughly all losses from 
mark-downs and unkno^Ti sources. The number of stock 
turns becomes apparent when the averages of the two in- 
ventories are divided into the sales iat cost. In figuring rates 
of turnover the average amount of capital invested is 
usually divided into the net sales. Of course circumstances 
may necessitate a slight variation from this method, but 
fundamentally a strict observance of this procedure is the 
only sound method. 

FOR A GROCERY STORE 

A grocery in the South submitted these figures — they are 
reasonably typical of a prosperous grocery business. The 
small stock investment is the most marked characteristic, 
as you will note. 

Advertising and donations $ 1,275 . 50 

Bad debts 492.66 

DeHveiy 3,410.85 

Depreciation and shrinkage 961 . 10 

General expenses 942 . 75 

Heat and light 475.20 

Insurance and taxes 844 . 56 

Interest on investment, at 6% 630 . 00 

Rent 2,865.00 

Salaries (including owner's) 7,842 . 94 

Supplies 385 . 61 

Total : $20,126.17 

Stock, first of year, at cost $ 7,341.60 

Purchases for year, at cost 73,021.45 

$80,363.05 

End of year stock at cost 6,998.11 

Sales, at cost $73,364.94 

Actual income from sales 96,243 . 75 

Gross profit $22,878 . 81 

Total expenses, as itemized above 20,126.17 

Net profit .$ 2,752.64 



RETAIL DATA AND FIGURES 121 

FOR A DRUG STORE 

The owner of a store in New England thought he was 
doing well until he found that he must take out the interest 
on his investment, and his salary, before figuring his net 
profit. 

Advertising and donations $ 1,204.81 

Bad debts 106.15 

Delivery 299.06 

Depreciation and shrinkage 210. 62 

General expenses 587 . 44 

Heat and light 462.25 

Insurance and taxes 492 . 14 

Interest on investment at 6% 900 . 00 

Rent 2,400.00 

Salaries (including owner's) 4,952 . 70 

Supplies 241.11 

Total $11,856.82 

Stock, first of year, at cost $ 8,120. 16 

Purchases for year, at cost 29,711.02 

$37,831.18 

End of year stock, at cost 7,902.10 

Sales, at cost $29,929.08 

$37,831.18 

Actual income from sales 42,106 . 52 

Gross profit $12,177.44 

Total expenses, as itemized above 11,856.28 

Net profit $ 321.16 

FOR A JEWELRY STORE 

It is interesting to compare these figures from the books 
of a middle western jeweler v^ath those given on page 124, 
from a shoe store having about the same sales volume. 

Advertising and donations $ 2,400 . 91 

Bad debts 171.54 

Delivery. 289.25 

Depreciation and shrinkage 821 . 22 

General expenses 405 . 25 

Heat and light 592.61 

Insurance and taxes 1,185 . 16 



122 GRAPHIC SALES ANALYSIS 

FOR A JEWELRY STORE, Continued 

Interest on investment at 6% $ 2,962 .85 

Rent 3,500.00 

Salaries (including owner's) 9,872 . 91 

Supplies : 738.50 

Total $22,940.20 

Stock, first of year, at cost $38,210.90 

Purchases for year, at cost 54,782 . 45 

$92,993.35 

End of year stock, at cost 37,466 . 21 

Sales, at cost $55,527. 14 

Actual income from sales 80,942.56 

Gross profit $25,415.42 

Total expenses, as itemized above 22,940 . 20 

Net profit $ 2,475.22 

FOR A DEPARTMENT STORE 

Advertising and donations $ 113,209 . 25 

Bad debts 5,691.95 

Delivery 81,211.01 

Depreciation and shrinkage 20,319 . 12 

General expenses 60,904 . 88 

Heat and light 31,843.60 

Insurance and taxes 23,191 . 40 

Interest on investment (6%) 37,210 . 84 

Rent 121,670.80 

Salaries (including owner's) 241,625 . 61 

Supplies 27,204.51 

Total $ 764,082.97 

Stock, first of year, at cost $ 309,750.12 

Purchases for year, at cost 2,167,101.40 

$2,476,851.52 

End of year stock, at cost 310,461.83 

Sales, at cost $2,166,389.69 

Actual income from sales 2,881,246.17 

Gross profit $ 714,856.48 

Total expense, as itemized above 764,082 . 97 

Apparent loss $ 49,226.49 

Discounts 231,216.45 

Net profit S 181,989.96 



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Figure 39; Here costs of doing business are shown to have advanced 
with almost equal rapidity in both large and small stores, for the three 
lines, each representing an actual retail concern, are practically parallel. 



ACCOUNTS SHEET 1918-1919 (tot) 




ITEMS j ACCaWS r.ECEIVASLE 


ACCOUM-S PAYABLE 






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Figure 40: This simple chart provides one executive with important 
facts about his business. The lines shown tell him how bills and 
accounts receivable, payable, and collectable compare with last year's. 

123 



124 GRAPHIC SALES ANALYSIS 

FOR A HARDWARE STORE 
This table is made up from indicative figures representing 
the opinions of several credit managers, and facts submitted 
by scores of individual stores. 

Advertising and donations $ 210. 80 

Bad debts 208.60 

Delivery 156 . 50 

Depreciation and shrinkage 180.00 

General expense 110 . 00 

Heat and light 100.50 

Insurance and taxes 180 . 50 

Interest on investment at 6% 720 . 00 

Rent. 720.00 

Salaries (including owner's) 2,748 . 00 

Supplies 56 . 10 

Total $ 6,391 .00 

Stock, first of year, at cost S 7,810.60 

Purchases for year, at cost 26,410.20 

$34,220.80 

End of year stock, at cost 8,010.10 

Sales, at cost $26,210.70 

Actual income from sales 34,073 . 91 

Gross profit $ 7,863.21 

Total expenses as itemized above 5,391.00 

Net profit $ 2,472.21 

FOR A SHOE STORE 
That expenses in this New York state shoe store are 
about normal is established by investigations made by the 
Harvard Graduate School of Business Administration, trade 
organizations, and System. 

Advertising and donations $ 2,008 . 41 

Bad debts 98.60 

Delivery. 264.82 

Depreciation and shrinkage. 401 . 14 

General expenses 1,645 . 75 

Heat and light 402.88 

Insurance and taxes 892 . 15 

Interest on investment at 6% 1,740 . 00 

Rents 2,400.00 



RETAIL DATA AND FIGURES 125 

FOR A SHOE STORE, Continued 

Salaries (including owner's) S 8,106.50 

Supplies 371.25 

Total S18,331.50 

Stock, first of year, at cost $24,680.42 

Purchases for year, at cost. 51,414.55 

$76,094.97 

End of year stock, at cost 22,365.86 

Sales, at cost $53,729.11 

Actual income from sales . . „ 72,498.24 

Gross profit $18,769.13 

Total expenses, as itemized above 18,331 . 50 

Net profit $ 437.63 

DEPRECIATION AND SHRINKAGE LOSSES 
Losses from depreciation and shrinkage include deprecia- 
tion on all equipment, irregular losses from stock, and stock 
depreciation not regularly covered by routine mark-downs. 
These figures are averages for lines, and give standards 
helpful in approximating the reasonableness of individual 
losses. Among 91 merchants interviewed no agreement 
appeared on methods for figuring depreciation. They all 
check direct shrinkage by watchfulness at the counters and 
in the receiving rooms, and by handling stock subject to rapid 
depreciation with unusual care, supplemented with the advice 
of manufacturers. 

Percentage of 
total 
Line ' net sales 

Clothing 2.16% 

Furniture 2. 14% 

Department stores 1 . 61% 

Dry goods 1 . 11% 

Jewelry 95% 

Groceries 76% 

Vehicles and implements . 62% 

Hardware 52% 

Shoes 50% 

Drugs 47% 

Mail-order houses . 12% 

Variety goods .06% 



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1 2 J 4 6 6 7 8 » 10 n H 

Month* 



Figiu-e 41: By combining two non- Figure 42: This chart shows that 
competing companies better use since the combination, the month- 
of equipment and labor resulted. by-month fluctuation is reduced. 




23,000 

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21 W) 

20,000 

19.000 

18.000 

17.000 

16.000 

15,000 

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A. M. Noon p. M. 



Figure 43: These charts show Figure 44: Note how much less 
productionof electricity in a power hourly fluctuation there is in this 
plant, on days five years apart. production chart than in Figure 43. 

126 



RETAIL DATA AND FIGURES 127 

Supply bills amounting to less than one-half of one per cent 
of the net sales in most lines and scattered over many items, 
offer a temptation to spend unnecessarily. Even though 
the amount of money involved in each instance may be 
small, the aggregate is worth attention. 

COST OF SUPPLIES 

Percentage 
of total 
Line net sales 

Jewelry 

Hardware 

Clothing 

Vehicles and implements 

Furniture 

Dry goods 

Groceries 

Drugs 

Mail-order houses 

Department stores 

Boots and shoes 

Variety goods 



60% 

43% 
42% 
41% 
38% 
37% 
36% 
34% 
32% 
30% 
21% 



It is worth noticing that in but a few instances is the 
expense item of heat, light, and power found to be in excess 
of 1% of the net sales. Below this 1%, because different 
stocks require varying amounts of light, a wide range of per- 
centages appear. These are averages for the various lines, 
and give forms against which similar expenses may be 
advantageously checked in a general way. 

HEAT, LIGHT, AND POWER COSTS 

Percentage 
of total 
Line net sales 

Shoes 1.10% 

Furniture 

Variety goods 

Drugs 

Clothing 

Jewelry 



81% 
69% 
62% 
61% 



128 GRAPHIC SALES ANALYSIS 

HEAT, LIGHT, AND POWER COSTS, Continued 

Percentage 
of total 
Line net sales 

Dry goods 54% 

Vehicles and implements 51% 

Hardware .43% 

Groceries ' 39% 

department stores 22% 

Mail-order houses 11% 

General expense includes, under this classification, buying 
expenses, salaries which cannot be definitely located, and 
miscellaneous general cost, such as returned goods expense 
or freight overcharges. The interest on the investment is 
figured on the average amount of capital actively used in 
the business. The cost of these charges, averaged from the 
books of a thousand-odd stores throughout the country, 
gives the following percentages of the total net sales volumes 
in the 12 retail lines investigated. 

Although general expenses will vary with the local con- 
ditions encountered in each competitive field, these averages 
offer standards against which to check roughly the expenses 
remaining after dealing with the main items. 

GENERAL EXPENSE 

Percentage 
of total 
Line net sales 

Department stores 6 . 38% 

Drugs 4.49% 

Shoes 4.36% 

Dry goods 4.15% 

Jewelry 3.95% 

Mail-order houses 2 .42% 

Clothing 2.31% 

Hardware 2.01% 

Furniture 1.10% 

Variety goods 91% 

Vehicles and implements 71% 

Groceries 45% 




Figure 45: That all lines of business are very much alike when it 
comes to the distribution of expense is shown by this chart of itemized 
average costs in six standard lines. Rent, salaries, and advertising 
costs in every instance take the major portion of the total expenditure. 

129 



130 GRAPHIC SALES ANALYSIS 

To fix the amount to put away as a reserve and the figure 
that will measure normal losses, requires standards which 
cross-section hundreds of going stores. Averages that merge 
individual characteristics into normal percentages then 
appear. Careful investigators have analyzed credit figures 
from the books of about 1,000 stores. The resulting stand- 
ards, after allowance has been made for unusual local 
factors, supply a rough check for gaging retail credit methods 
and determining the proper reserves. These standards repre- 
sent percentages of the net total sales and refer only to totals 
of accounts actually written off the books as worthless. 

BAD DEBT LOSSES 

Furniture 1.94% 

Groceries 47% 

Clothing , 34% 

Vehicles and implements 33% 

Hardware 31% 

Jewelry 21% 

Dry goods 21% 

Department stores 19% 

Drugs 19% 

Shoes 10% 

Variety goods no loss 

The ''assumed price" includes a complete vehicle with the 
average type of body. Increases or decreases in these prices, 
which are not radical, will not seriously alter the operation 
charges. These figures were presented before the Electric 
Vehicle Association of America by William P. Kennedy. 

WHAT IT COSTS TO DELIVER BY ELECTRICITY 

Capacity, lbs 700 1,000 2,000 3,000 

Assumed price $1,500 $2,200 $2,600 $3,000 

Fixed charges — 

Interest at 6% $90 $132 $156 $180 

Depreciation at 10%. 150 220 260 300 

Fire insurance at 1%. 15 22 28 30 

Liability insurance... _100 JOO JOO JLOO 

$355 $474 $544 $610 



RETAIL DATA AND FIGURES 131 

WHAT IT COSTS TO DELIVER BY ELECTRICITY 
(Continued) 
Maintenance — 

Battery upkeep $170 $180 $200 $240 

Tire upkeep 119 158 212 225 

Mechanical parts up- 
keep 50 60 80 90 

$339 $398 $492 $555 
Garaging — 

Electric power $120 $140 $170 $240 

Storage and washing.. 180 180 180 180 

Garage labor 100 120 160 180 

$400 $440 $510 $600 

Annual operating cost. . .$1,094 $1,312 $1,546 $1,765 

Daily cost (312 days) ...$3.51 $4 . 20 $4 . 85 $5 . 66 

Drivers, daily pay 2.00 2.00 2.50 2.50 

Total daily cost $5.51 $6 . 20 $7 . 35 $8 . 16 

Capacity, lbs 4,000 7,000 10,000 

Assumed price $3,400 $4,000 $4,500 

Fixed charges — 

Interest at 6% $204 $240 $270 

Depreciation at 10% 340 400 450 

Fire insurance at 1% 34 40 45 

Liability insurance 100 100 100 

$678 $780 $865 
Maintenance — 

Battery upkeep $285 $365 $ 415 

Tire upkeep 306 340 575 

Mechanical parts upkeep 100 125 150 

$691 $830 $1,140 
Garaging — 

Electric power $300 $360 $400 

Storage and washing 180 180 180 

Garage labor 200 250 300 

$680 $790 



Annual operating cost $2,049 $2,500 $2,885 

Daily cost (312 days) $6.57 $ 8.01 $ 9.25 

Drivers, daily pay 2.50 3.00 3.00 

Total daily cost $9 .07 $11 .01 $12 .25 



132 GRAPHIC SALES ANALYSIS 

These national delivery cost standards, which include 
wages and all items directly connected with deliveries, give 
averages for the country against which individual figures 
may be checked for extreme variations from normal condi- 
tions. An absolute check on individual delivery expendi- 
tures is, of course, impossible without allowance for widely 
varied local factors and conditions. 

DELIVERY COST STANDARDS 

Percentage of sales 

Groceries 2.53% 

Department stores 2 . 01% 

Vehicles and implements 1 . 06% 

Dry goods 1.02% 

Furniture 94% 

Hardware 91% 

Clothing 65% 

Drugs 51% 

Shoes 46% , 

Jewelry 09% 

Variety goods No deliveries 

Figures drawn from over 1,000 stores are back of these 
advertising cost averages, which are percentages of net sales 
and include all types of advertising normally paid for by 
retailers — letters, catalogs, decorating windows, newspaper 
space, time used, and so on. 

ADVERTISING COSTS 

Groceries 83% 

Hardware 1.12% 

Vehicles and implements 1 . 22% 

Variety goods 1 • 52% 

Shoes 1.65% 

Dry goods 1.67% 

Drugs 1.76% 

Furniture 2.72% 

Jewelry 2.85% 

Clothing 3.16% 

Department stores 4 . 01% 

Mail-order houses 7 . 21% 



Comparisons of Total Expenses with Advertising Costs 



Percent 
age 

2ft- 



I I 1 I I 



Average Costs of Doing Business 
Average Advertising Costs 




Figure 46 : These comparisons of average advertising costs with total 
costs of doing business indicate that lines which turn quickly under 
low costs spend the least for advertising. Department stores, however, 
strive for large volume in order to cover heavy operating expenses. 

133 





Itemized Costs of Doing Business in Representative Lines | 


% 




r 




































Jewelry 


-\ 








26 




1 






























^ 




— 


J 








































k 






Fumtturer 








24 
22 






























/: 










' II ^ 










i 


























7 








_ 












i 
























^/ 


y 




—^ 






Clothing h 










1 


















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:^ 


























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— ^ 


, 


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18 




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im 









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11 


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— 


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— 


H 


— 


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p 


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Mail Order Houses 


r 




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Advertis- 
ing 


Heat 
and 
Light 


Delivery 


Supplies 


Insurance 
and 
Taxes 


General 
Expense 


Depreci- 
ation and 
Shrin.- 


Bad 
Debts 


ToUl 







Figure 47: Each line in this chart represents itemized costs of doing 
business for a retail line. As the lines progress to the right, the 
various items of expense are added, until total operating costs result. 







1912 


1913 


1914 


1915 


1916 


TflttiCcst 


9,000 Dollars 












6,600 . 








'iS2— 


J8?55 


8,200 • • 








-^^ 




7.800 • 




$7^54 


^'^^^y^ 






7,400 • 




^ 








7,000 . 


J7,|31^ 










Cost* 

Pefcentsge 

Buedon 

SeJes 


.16 Percent 








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.15 












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.14 






y^ 




I^^ 


.13 - 


] 3 S^"""**".*, 


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.12 - 












.11 












Tetal Ja!M 


65,000 Dollars 










567000 


60,000 - 




J3895 






J63J000 


55.000 • 


tq^/in"; ^ 


^<^ 






^ 


50.000 • 






^ — 


JS4l78 




45,000 • 






S50.755 






40,000 - 













Figure 48: Here is shown the relation of costs to sales. The upper 
graph marks total costs and the lower total sales. The middle graph 
shows the ratio between the costs and sales for each of the yeara 

134 



RETAIL DATA AND FIGURES 



135 



It is to be expected that valuable furniture and jewelry- 
stocks, and drug inventories containing highly inflammable 
goods, cost more than usual to insure, and make the in- 
surance percentages paid by retailers of these lines heavy. 
Clothing, department store, and dry goods stocks are also 
large, and frequently valuable. Therefore, insurance charges 
on them naturally average higher than among the bulky or less 
expensive goods handled by grocery, hardware, vehicle, 
variety, and implement stores. These conditions are sub- 
stantiated by the percentages of retail sales spent for insur- 
ance and taxes, as presented here. 



INSURANCE COSTS 



Groceries 

Mail-order houses . 

Variety goods 

Hardware 

Department stores, 
Shoes 



Percentage of 

net sales 

volume 

58% 



1 

1 

1 

1 

1 

1 

1 

Furniture 1 



Implements and vehicles 

Clothing 

Dry goods 

Drugs 

Jewelry 



01% 
03% 
04% 
07% 

08% 
21% 
32% 
57% 



Cost of doing business and profits from 38 stores in cities 
ranging in population from 7,500 to 300,000 or over, in 24 
states, are here analyzed. These figures were collected by the 
National Dry Goods Association, and a number of interesting 
facts will be brought out by a few moments' study of them. 
Notice, for instance, that the lowest costs join with the 
highest net profits in the larger cities. The averages for all 
of the stores in the 24 states are: gross profit, 30.45%; net 
profit, 6.45%; cost of doing business, 23.8%. It should be 
understood that these percentages refer only to dry goods 
stores. The figures which established these averages were 
carefully audited by experts. 



136 GRAPHIC SALES ANALYSIS 

COSTS AND PROFITS FROM 24 STATES 

GROSS PROFITS 

(States with five highest percentages) 

Kentucky 33.86% Alabama 30.50% 

Minnesota 33.30% Virginia 31.41% 

Tennessee 33.12% 

AVERAGE COST OF DOING BUSINESS 
(States with six highest average percentages) 

Tennessee 27.34% Nebraska 26.83% 

Indiana 27.00% Alabama. . ; 25.94% 

Minnesota 27.00% Texas 25.58% 

AVERAGE NET PROFITS 

(States with six highest average percentages) 

Utah 11.00% Louisiana 9.40% 

Kentucky 10.66% Michigan 8.00% 

West Virginia 9 . 80% New York 6.00% 

AVERAGE GROSS PROFITS 
(By population and locality) 

75,000-100,000 population 33.23% 

15,000-25,000 population .31 .29% 

100,000 and over, population 31 .07% 

50,000-75,000 population 30.20% 

25,000-50,000 population 30.00% 

Farming districts 31 .80% 

Manufacturing and farming localities 30 . 00% 

Resorts 29.95% 

Manufacturing centers 29.88% 

AVERAGE COSTS OF DOING BUSINESS 
(By population and locality) 

300,000, and over, population (lowest) 21 .25% 

75,000-100,000 population (highest) 27.03% 

Shipping centers 24 . 88% 

Farming districts 25 . 52% 

Resorts 24.00% 

Manufacturing centers 23 . 22% 



AVERAGE COSTS OF DOING BUSINESS 




Figure 49: Comparison of this chart of costs with that in Figure 50 
demonstrates that department stores, purchasing for rapid clearances, 
overcome high costs by taking small net gains on numerous turnovers. 



% 
42- 



Retail ff!ark-Ups, Costs^and Profits 



Cost of Doing Business 
Net Profit (Single Turnover) 




Figure 50: This chart, assembled from the figures of 579 concerns, 
shows gross mark-ups divided into costs and net gains. Since only 
one turnover is represented, the profits on investment are not included. 

137 



1^ GRAPHIC SALES ANALYSIS 

AVERAGE NET PROFITS 

(By population and locality) 

300,000, and over, population (highest) 8.40% 

100,000, and over, population (lowest) 5.91% 

Farming districts 7. 28% 

Manufacturing centers 6 . 66% 

Manufacturing and farming localities 6 . 25% 

Resorts 5.95% 

Shipping centers 5 . 50% 

COST AVERAGES AND EXPENSES FROM THE 
BOOKS OF 1,569 CONCERNS 
''Costs of doing business" in these tables exclude freight 
and cartage, losses from mark-downs, and gains through 
discounts. "Salaries" indicates direct sales payrolls, in 
some instances including the time spent by the proprietor 
in selling. "Delivery" and "light, heat, and power" include 
payroll and upkeep charges. All irregular stock losses and 
all depreciation are listed under "depreciation and shrink- 
age." Items which cannot be allocated, administrative and 
buying salaries, indirect payrolls and investment charges 
make up "general expense." All figures refer to net sales. 
Add 1.5% for Pacific Coast, southern and mountain states; 
and 2% for cities over 400,000. Deduct 0.5% for Atlantic 
Coast and 3% for rural districts. Annual sales exceeding 
$5,000,000 are not considered. 

DRY GOODS STORE COSTS 
The cost of doing business itemized here is the average 
for the United States, as found by investigation. Note 
(1) that stores handling the cheaper stocks have been 
eiuninated; (2) that annual sales volumes of over $500,000 
were not included; (3) that freight and cartage charges are 
not included. 

Rent 3.24% 

Salaries 9.65% 

Advertising 1 . 67% 

Heat and light 54% 

Delivery 1.02% 

Supplies 38% 



RETAIL DATA AND FIGURES 130 

DRY GOODS STORE COSTS, Continued 

Insurance and taxes 1 . 08% 

General expenses 4 . 15% 

Depreciation and shrinkage 1 . 11% 

Bad debts .21% 

Total percentage of expenses to sales 23 . 05% 

A SMALL DRY GOODS STORE 

Investigation showed that on the average, small dry goods 

stores pay out again for expenses 16.21% of their sales. 

Note that this tj^pical middle western small store: (1) 

makes no deliveries; (2) does not use expensive selling space 



Rent $ 731.12 or 2 

Salaries 2,546.31 or 10 

Advertising. 302.53 or 1 

Heat and light 100.84 or 

Delivery 

Supplies. 50.42 or 

Insurance and taxes 201 . 69 or 

General expenses 50 . 42 or 

Depreciation and shrinkage 100 . 84 or 

Bad debts. . 25 .21 or 



Total expense $4,109.38 or 16 



9% 
1% 
2% 
4% 



8% 
2% 
4% 
1% 



3% 



TYPICAL DRY GOODS STORE 
This store is in the Southwest. The owner reports that 
he secures four turnovers a year through the store at a 
net mark-up of 28.9%. Note how closely these actual fig- 
ures check with the general averages for this line. 

Rent $ 1,550.06 or 3.1% 

Salaries 4,800. 19 or 9.6% 

Advertising 750.03 or 1.5% 

Heat and light 200.01 or .4% 

Delivery 450.02 or .9% 

Supplies 200.01 or .4% 

Insurance and taxes 550 . 02 or 1.1% 

General expenses 2,200.09 or 4.4% 

Depreciation and shrinkage 700 . 03 or 1 .4% 

Bad debts 150.01 or .3% 

Total expense $11,550.47 or 23. 1% 



140 GRAPHIC SALES ANALYSIS 

COST FIGURES FROM A LARGE 
DRY GOODS STORE 

Average dry goods stores securing annual sales above 
$200,000 pay, the investigation established, expenses of 
24.76% when in competition with department stores in the 
larger cities. This Indiana store typifies them. Note (1) 
the high advertising percentage; (2) the rent. 

Rent $ 7,650.37 or 3.4% 

Salaries 22,276.09 or 9.9% 

Advertising 6,975.34 or 3.1% 

Heat and light 2,025. 10 or .9% 

Delivery 3,150.15 or 1.4% 

Supplies 1,575.08 or .-7% 

Insurance and taxes 2,700 . 13 or 1 . 2% 

General expenses 4,950 . 24 or 2 . 2% 

Depreciation and shrinkage 3,150. 15 or 1.4% 

Bad debts 450.02 or .2% 

Total expense $54,902.67 or 24.4% 



AVERAGE COST FIGURES FOR 
GROCERY STORES 

Analyses of the expenses of grocery concerns scattered 
from New York to Oregon fixed this average cost of doing 
business given here. Note (1) that groceries drawing trade 
from customers with either small or large incomes are not 
included; (2) that, since the average mark-up is 19.91% 
of the Belling prices, the turnovers are of necessity rapid 
and carry a low net profit. 

Rent 3.07% 

Saiaries.^ 8.46%) 

Advertising 83% 

Heat and light 39% 

Delivery 2.53% 

Supplies. 37% 

Insurance and taxes 58% 

General expenses . 45% 

Depreciation and shrinkage 76% 

Bad debts A7% 

Total percentages of expenses to sales 17 . 91% 







\ 


^r 


«^ / Millinery \ 
~ / $98,150,000^^ 


66% 
Dry Goods 
$599,875,000 


^^ 17% 
'y^ Notions 
\^ $156,090,000 


/ 






Total 
$910,500,000 



Figure 51: This chart (from "Selling Forces") indicates how the jobbing 
of textiles is divided. Amounts may have changed since the chart was 
prepared, but the percentage figures are no doubt still fairly accurate. 



^ 


Other Urge \ 


/ Largest 
/ $260,740,000 
/ 28% 


Dry Goods \ 

Stores \ 
$218,435,000 \ 
23% \ 


j 


-^— ?ifth 1 


1 ^,-— — "^ — / 


Y~-^^.^ $69,735,000 1 


L - — ■ / 


\ ^"^"^^--I^ / 


\ Second / 


\ Fourth -^-^ 


\ $165,100,000 / 


\ $97,880,000 / 


\ 18% / 


Third \ / 


\ / $1 


30,561,000 \ / 




14% \/ Total 


^^/_ 


^>^ $943,451,000 



Figure 52: Another chart (from "Selling Forces") shows the volume of 
business done by leading stores in the 100 largest cities. These 100 
stores do in the aggregate 28% of the total business in those cities. 

141 



142 GRAPHIC SALES ANALYSIS 

THE COST OF DOING BUSINESS OF A 
SMALL CASH GROCERY 

It is natural that among groceries handling for cash only 
a trade drawn from modest incomes investigation should 
fix an expense average — 14.77% — below the general average. 
These figures from a city store represent this type of grocery. 
Note (1) that there is no delivery expense or loss from bad 
debts; (2) that a good location is rented. 

Rent S 291.92 or 2.7% 

Salaries 1,048.76 or 9.7% 

Advertising 21 .62 or ,2% 

Heat and light 32.44 or .3% 

Delivery 

Supplies 21.62 or .2% 

Insurance and taxes 43 . 25 or .4% 

General expenses 21 . 62 or .2% 

Depreciation and shrinkage 86 . 50 or . 8% 

Bad debts 



Total expense $ 1,567.73 or 14 



5% 



OPERATING COSTS OF A TYPICAL 
GROCERY STORE 

In a middle western town of 43,000 this grocery store 
handles annual sales of $50,000, at an expense not far from 
the average, as given on page 140. Note (1) that advertis- 
ing costs are less than in other lines; (2) that delivery 
expenses amount to almost as much as the rent; and (3) that 
insurance costs are low. 

Rent $ 2,256.95 or 3.3%, 

Salaries 4,067.09 or 8.1% 

Advertising 351 .48 or .7% 

Heat and light 251 .05 or .5% 

Delivery : 954.01 or 1.9%, 

Supplies 150.63 or .3% 

Insurance and taxes .....' 200 . 84 or .4% 

General expenses 150 . 63 or . 3% 

Depreciation and shrinkage 301 . 27 or . 6% 

Bad debts 150.63 or .3% 

Total expense $ 8,834.58 or 16.4% 



RETAIL DATA AND FIGURES 143 

WHAT IT COSTS A LARGE CREDIT 
GROCERY TO OPERATE 

Investigation also supported the accepted conclusion that 
when groceries sell on credit to an exclusive trade their 
expenses run above usual levels. These expenses, paid by a 
city store, typify the average — 18.97% — found for this class 
of groceries. Note (1) the rent; (2) the wage total; and (3) 
the delivery expense. 

Rent $ 2,009.10 or 2.7% 

Salaries 6,771.40 or 9.1% 

Advertising 595.29 or .8% 

Heat and light 223.23 or ,3% 

Delivery 2,232.33 or 3.0% 

Supplies. , , 297.64 or .4% 

Insurance and taxes 223 . 23 or .3% 

General expenses 595 .29 or .8% 

Depreciation and shrinkage 744 .11 or 1.0% 

Bad debts 595.29 or .8% 

Total expense $14,286.91 or 19.2% 

AVERAGE OPERATING COSTS OF 
VEHICLE STORES 

Here is the percentage pointed by the investigation as the 
average cost of doing a vehicle and implement business in 
the United States. Note (1) that the average operating 
cost for this line is second above the lowest fixed — ^the aver- 
age for mail-order houses (15.02%); (2) that salaries are 
proportionately high because sales are not large enough, 
individually, to counterbalance their infrequency. 

Rent 2.12% 

Salaries 9.41% 

Advertising 1.22% 

Heat and light 51% 

Delivery 1.06% 

Supplies. 42% 

Insurance and taxes ' 1 . 04% 

General expenses 71% 

Depreciation and shrinkage 62% 

Bad debts .33% 

Total percentage of expenses to sales 17.44% 



144 GRAPHIC SALES ANALYSIS 

THE COST OF DOING BUSINESS OF A 
TYPICAL VEHICLE STORE 
The figures presented below are from the books of a store 
selUng $57,600 worth of vehicles and implements annually in 
an eastern city of 33.000. They total to within 1% of 
the average for the country in this Hne, as given on the 
preceding page. 

Rent $1,094.63 or 1.9% 

Salaries 5,818.81 or 10.1% 

Advertising 633.73 or 1.1% 

Heat and light 345 . 67 or .6% 

Delivery 518.51 or ,9% 

Supplies 230.45 or ,4% 

Insurance and taxes 460 . 90 or . 8% 

General expenses 230.45 or .4% 

Depreciation and shrinkage 403 . 28 or .7% 

Bad debts 115.22 or .2% 

Total expense $9,851.65 or 17.1% 

AVERAGE OPERATING COSTS FOR 
VARIETY STORES 
Typical variety stores in the United States were found to 
be paying, when the figures were averaged, these expenses. 
Note (1) that rents rank high because good locations are 
usually demanded in this line; (2) that the advertising 
expenditure includes ''leaders" put on the counters at a loss 
to attract trade; (3) that, since the turnover is rapid and the 
cost of doing business low, this line is profitable under a 
suitable volume and mark-up. 

Rent 4.41% 

Salaries 8.86% 

Advertising 1 . 52% 

Heat and light 81% 

Delivery 

Supplies 21% 

Insurance and taxes 98% 

General expenses 91% 

Depreciation and shrinkage 06% 

Bad debts 

Total percentage of expense to sales 17 . 76% 



RETAIL DATA AND FIGURES 145 

WHAT IT COSTS A TYPICAL VARIETY 
STORE TO OPERATE 
These figures from a variety store in a town of 2,000 
check well with the average for the country. The sales total 
about $11,000 a year. Note (1) that there are no deUvery 
charges and no losses from defaulted debts; (2) that this 
store can net a 50% profit on the investment under a net 
mark-up of 23%, through 10 stock turnovers. 

Rent $451.49 or 4.1% 

Salaries 980.07 or 8.9% 

Advertising 165.18 or 1.5% 

Heat and light 19. 11 or .9% 

Delivery 

Supplies 22.02 or .2% 

Insurance and taxes 99 . 11 or . 9% 

General expenses 55 .06 or .5% 

Depreciation and shrinkage 11 . 01 or . 1% 

Bad debts 



Total expense $1,803.05 or 17 



1% 



AVERAGE COSTS OF DOING BUSINESS OF 
HARDWARE STORES 
This is the standard cost of retailing hardware in America 
as fixed by analyses of typical stores in Canada and the 
United States. Note that the business takes healthy net 
profits but does not secure as many sales as stores handling 
lines involving lower average costs. Reports indicate that 
often concentration on profitable repairs results in dingy 
hardware selling floors and lost sales. 

Rent 3.41% 

Salaries 10.11% 

Advertising 1 . 12% 

Heat and light 43% 

Delivery 91% 

Supplies 60% 

Insurance and taxes 99% 

General expenses 2 . 01% 

Depreciation 52% 

Bad debts .31% 

Total percentage of expenses to sales 20.41% 



146 GRAPHIC SALES ANALYSIS 

OPERATING EXPENSES OF A TYPICAL 
HARDWARE STORE 
In an Indiana town of about 5,000, a hardware store with 
sales of $45,000 a year pays these expenses, which are re- 
markably close to the standard. Note (1) that salaries are 
excessive because sons of the owners work in the store at 
abnormal wages; (2) that the losses from bad debts are 
unusually high. 

Rent $1,305.61 or 2.9% 

Salaries 5,042.35 or 11.2% 

Advertising 405.20 or .9% 

Heat and light 225.10 or .5% 

DeUvery 270. 13 or .6% 

Supplies 180.08 or .4% 

Insurance and taxes 495 . 23 or 1 . 1% 

General expenses 360 . 17 or . 8% 

Depreciation and shrinkage 225 . 10 or .5% 

Bad debts 180.08 or .4% 

Total expense $8,689.05 or 19.3% 

AVERAGE OPERATING COSTS OF 
CLOTHING STORES 
This average cost of selling clothes at retail in the United 
States was set by the investigation's analyses of actual 
figures from all sections of the country. Note (1) that stores 
in large cities, for which a separate cost standard of 30.12% 
was fixed, are not included ; (2) that the advertising expendi- 
ture is the highest scheduled in the standards, if furniture 
and department stores are excepted. 

Rent 3.04% 

Salaries 9.49%, 

Advertising 3 . 16% 

Heat and light 62% 

Delivery 65% 

Supplies 43%, 

Insurance and taxes 1 • 07% 

General expenses 2 . 31% 

Depreciation and shrinkage 2. 16% 

Bad debts -34% 

Total percentage of expenses to sales. 23.27% 



RETAIL DATA AND FIGURES 147 

A TYPICAL CLOTHING STORE 
This cost of doing business is paid by a clothier in the 
Middle West who secures annual sales of $60,000. Note 
(1) that the rent is low, because an entire building was 
leased and improved until space not needed for selling could 
be subleased at a profit; (2) that the cost of heating is 
reduced by supplying tenants; (3) that these savings are 
thrown into the advertising appropriation. 

Rent S 1,322.24 or 2.2% 

Salaries 5,469.29 or 9. 1% 

Advertising 2,043 .47 or 3.4% 

Heat and Ught 180.31 or .3% 

Delivery 360.61 or .6% 

Supplies 120.20 or .2% 

Insurance and taxes 661 . 12 or 1 . 1% 

General expenses 1,081 . 84 or 1.8% 

Depreciation and shrinkage 1,322 . 24 or 2.2% 

Bad debts 240.41 or .4 % 

Total expense $12,801.73 or 21.3% 

AVERAGE DRUG STORE COSTS 
Costs of doing a retail drug business were averaged to this 
standard. Note (1) that, with the exception of depart- 
ment, furniture, and jewelry stores, higher rents are paid in 
this line than in any other standard retail activity; (2) that 
soda fountain profits normally make it possible to pay the 
high rents ; and (3) that many specialties not connected with 
the former line of drug stocks are now used to build net 
returns above the rising expenses. 

Rent 4.02% 

Salaries 10.95% 

Advertising 1.76% 

Heat and light 69% 

Delivery 51% 

Supplies .• .36% 

Insurance and taxes 1.21% 

General expenses 4 . 49% 

Depreciation and shrinkage 47% 

Bad debts .19% 

Total percentage of expenses to sales 24 . 65% 



148 GRAPHIC SALES ANALYSIS 

COST OF DOING BUSINESS OF A 
TYPICAL DRUG STORE 
The expenses here itemized are paid by a druggist who 
handles annual sales of $20,000 in a middle western city. 
They are close to the average for the country, given in the 
preceding table. Net gains from the soda profits are suffi- 
cient to care for the $924.65 spent for rent. 

Rent $ 924.65 or 4.9% 

Salaries 2,191.01 or 10.9% 

Advertising 522.64 or 2.6% 

Heat and light 160.81 or .8% 

Delivery 80.40 or .4% 

Supplies 60.30 or .3% 

Insurance and taxes 281 .41 or 1.4% 

General expenses 482 . 42 or 2 . 4% 

Depreciation and shrinkage 100 . 50 or . 5% 

Bad debts 40.20 or .2% 

Total expense $4,844.34 or 24.4% 

AVERAGE OPERATING COSTS OF 
FURNITURE STORES 
The standard here given is the average found after ana- 
lyzing the cost of retailing furniture in the United States. 
Note (1) that the bulky nature of the stocks drives rent 
higher than in any other itemized national average, those 
for department and jewelry stores excepted; (2) that 
general expenses are unusually heavy, partly on account 
of the incidental repairing necessitated by poor packing; and 
(3) that the insurance cost is high. 

Rent 5.04% 

Salaries 9.73% 

Advertising 2.72% 

Heat and light 92% 

Delivery 94% 

Supplies 41% 

Insurance and taxes 1 . 57% 

General expenses 1 . 10% 

Depreciation and shrinkage 2. 14% 

Bad debts 1.94% 

Total percentage of expenses to sales 26.51% 



RETAIL DATA AND FIGURES 149 

OPERATING COSTS OF A TYPICAL 
FURNITURE STORE 
These figures from a store which sells $100,000 worth of 
furniture a year in the South are tj^pical of the average 
established for the line in this country. Investigation shows 
that the loss from bad debts is the heaviest encountered 
among the costs here assembled from various stores 
operating under normal conditions. 

Rent $ 5,511.56 or 5.5% 

Salaries 8,317.60 or 8.3% 

Advertising 2,906.15 or 2.9% 

Heat and light 801.70 or .8% 

Delivery 1,102.33 or 1.1% 

Supplies 501 .06 or .5% 

Insurance and taxes 1,402 . 97 or 1 . 4% 

General expenses 1,803.82 or 1.8% 

Depreciation and shrinkage 1,904 .03 or 1.9% 

Bad debts 1,202.54 or 1.2% 

Total expense $25,453.76 or 25.4% 

JEWELRY STORE COSTS 
Jewelers, investigation showed, pay the highest average 
retail expenses, if some of the largest department stores are 
overlooked. The standard is here given. Note (1) that the 
turnovers secured under these high costs are slow; (2) that, 
therefore, net profits are often unsatisfactory, even when 
heavy net mark-ups are realized; (3) that, hence, safe novel- 
ties and healthier returns from repairs are needed. Note, 
also, that general expenses are unusual. 

Rent 4.98% 

Salaries 10.96% 

Advertising 2.85% 

Heat and light 61% 

Delivery 09% 

Supplies 89% 

Insurance and taxes 1 . 32% 

General expenses 3 . 95% 

Depreciation and shrinkage 95% 

Bad debts .21%, 

Total percentage of expenses to sales 26.81% 



150 GRAPHIC SALES ANALYSIS 

OPERATING COSTS OF A TYPICAL 
JEWELRY STORE 

In Kansas one jeweler's books show these expense pay- 
ments. There is not an item in which they vary from the 
national average by more than 2%. A progressive Indiana 
jeweler has forced his payroll expense down to 5% by adver- 
tising his repair bench and dividing the clerks* time between 
it and the counters. 

Rent $1,080.40 or 3.6% 

Salaries 3,361 .23 or 11.2% 

Advertising 1,050.38 or 3.5% 

Heat and light 180.07 or .6% 

Delivery ^ 30.01 or .1% 

Supplies 270. 10 or .9% 

Insurance and taxes 540 . 20 or 1 . 8% 

General expenses 630.23 or 2.1% 

Depreciation and shrinkage 360.13 or 1.2% 

Bad debts 9003 or .3% 

Total expense $7,592.78 or 25.3% 



OPERATING COSTS FROM A 
JEWELRY DEPARTMENT 

The expenses listed below are those of a jewelry depart- 
ment in a large department store in the East. The rate of 
turnover is about twice as high as any reported from indi- 
vidual stores. The net profit on each turn is lower, however, 
and the costs are higher. Note particularly the costs of 
rent, advertising, and delivery. 

Rent $ 20,184.64 or 5.6% 

Salaries 35,683.56 or 9.9% 

Advertising 14,778.04 or 4.1% 

Heat and light 3,243.96 or .9% 

Delivery 3,964.84 or 1.1% 

Supplies 5,046.16 or 1.4% 

Insurance and taxes 2,883 . 52 or .8% 

General expenses 15,498.92 or 4.3% 

Depreciation and shrinkage 6,127.48 or 1.7% 

Bad debts 360.44 or .1% 

Total expenses $107,771.56 or 29.9%, 



RETAIL DATA AND FIGURES 151 

OPERATING COSTS OF A WHOLESALE 
JEWELRY CONCERN 
The figures tabulated below were taken from a prosperous 
wholesale jewelry business situated west of the Mississippi 
river. It is quite probable that the cost of doing business 
in this particular line is higher than in the majority of lines 
selling at wholesale. 

Rent $ 3,600.99 or .9% 

Salaries 36,410.01 or 9.1% 

Advertising 1,600.44 or 4.0% 

Heat and light 3,600.99 or 9.0% 

Delivery 3,200.88 or .8% 

Supplies 6,401.76 or 1.6% 

Insurance and taxes 2,800 . 77 or . 7% 

General expenses 8,402.31 or 2.1% 

Depreciation and shrinkage 3,200.88 or .8% 

Bad debts 3,600.99 or .9% 

Total expenses $72,820.02 or 18.2% 

WHAT IT COSTS TO OPERATE 
SHOE STORES 
This is the itemized average cost of retailing shoes set for 
the country by the Shaw Bureau of Business Standards' 
extensive investigation. You will note (1) that rents are high ; 
(2) that salaries are also heavy, proportionately; and (3) 
that general expense is unusual. These conclusions, there- 
fore, follow: (1) that, under normal mark-ups, net profits 
are weak; (2) that, hence, success demands closer buying in 
styles, frequent reordering of in-stock lines, and less idle time. 

Rent 3.21% 

Salaries 10. 51% 

Advertising 1 . 65% 

Heat and light 1.10% 

Delivery 46% 

Supplies 30% 

Insurance and taxes 1 . 03% 

General expenses 4 . 36% 

Depreciation and shrinkage 50% 

Bad debts .10% 

Total percentage of expenses to sales 23 . 22% 



152 GRAPHIC SALES ANALYSIS 

COST OF DOING BUSINESS OF A 
TYPICAL SHOE STORE 
These figures from a New England shoe store fit the aver- 
age closely. Three and one-half turnovers are made under 
a mark-down loss of about 9%. Therefore, the owner is 
forced to realize through the stock a mark-up close to 35% 
in order to get a sound net profit. It is interesting to note 
that rent, delivery, and depreciation and shrinkage are low, 
while salaries and general expenses are high. 

Rent $ 778.13 or 3.1% 

Salaries 2,786.21 or 11.1% 

Advertising 376.51 or 1.5% 

Heat and light 225.91 or .9% 

Delivery 75.30 or .3% 

Supplies 100.40 or .4% 

Insurance and taxes 301 . 21 or 1 . 2% 

General expenses 1,029 . 14 or 4.1% 

Depreciation and shrinkage 150. 61 or .6% 

Bad debts 25.10 or .1% 

Total expense $5,848.52 or 23.3% 

AVERAGE OPERATING COSTS OF 
BOOK STORES 
These figures were compiled from the books of 43 repre- 
sentative merchants. They indicate that the average yearly 
rate of turnover in book stores is 2.65 times. In those stores 
which do both a cash and a credit business, the percentage 
of credit business to total sales is indicated to be about 
43.2% — the remainder, of course, being cash. 

Rent 3.90% 

Salaries 12.30% 

Delivery 2.20% 

Supplies 78% 

General expenses 2 . 97% 

Advertising 2.33% 

Heat and light 40% 

Insurance and taxes 85% 

Bad debts 41% 

Depreciation 2.00% 

Total percentage of expenses to sales 28 . 14% 



RETAIL COST FIGURES 153 

OPERATING COSTS FOR THE RETAIL 
LUMBER BUSINESS 

''Real selling/' says a prominent manufacturer, "is 
bringing to a man something he needs and wants. It 
is 25% on the firing line, and 75% back of it. 

'The fundamentals are the important factors in 
selUng. Begin with the product — it must have a selling 
idea in it. If it hasn't one, is it worth selling? The 
very business itself should be founded on the solid 
rock of true service. 

"Then the management should open up leads, make 
salesmen's work easier by advertising, train and educate 
the men, and back them up by A-Number-1 service 
every minute of every day. 

"With such backing a salesman has the chance to 
be a business man — a business builder — rather than 
just an order taker. I see to it, therefore, that my 
men know ,as much as possible about the intimate 
business problems of the men they call on." 

Intimate knowledge of the fundamentals this man 
mentions is to play an increasingly important part, 
during the coming years as a vital selling factor, ac- 
cording to a number of thoughtful business men. And 
undoubtedly the training of salesmen as business 
builders will be looked upon with more and more favor 
by selling executives. 

The lumber business offers a fruitful field for real 
business building, and if manufacturers take up whole- 
heartedly the task of building up retailers, the lumber 
dealer should fare well, for he has added enough side- 
lines in recent years to bring himrelf to the attention 
of manufacturers in several lines. 

The figures in the following tables indicate some of 
the lumber dealers' problems and some of the tendencies 
in the retail lumber business. They are well worth 
careful analysis. 



154 GRAPHIC SALES ANALYSIS 

TOTAL COSTS OF DOING BUSINESS FOR 

RETAIL LUMBER YARDS 

(Yards of all sizes) 

Indicated Indicated 

typical attainable 
Population of city costs costs 

Under 5,000 13.78% 11.87% 

5,000 to 50,000 15.07% 12.61% 

50,000 to 100,000 16.75% 14.60% 

Over 100,000 17.44% 15.66% 

Costs of doing business in this and in all similar tabulations 
in the following tables are given as percentages of total sales. 
All are based on actual figures; all are averages; and all are 
given as indicative, not as final figures. 

INDICATIVE COSTS FOR COUNTRY YARDS 
(Population under 5,000) 

Indicated Indicated 

typical attainable 

Items costs costs 

Salaries 5.20%) 5.00% 

Rent 79%, .64% 

Handling stock 4.53% 8.24% 

Advertising 38% .55% 

Heat and light. < 10% .11% 

Supplies 25% .37% 

General expense 1 .22% .94% 

Insurance and taxes .81% -75% 

Bad debts .50% .27%) 

Total 13.78% 11.87% 

Indicative costs for yards in towns of less than 5,000 
population are here given for all of the usual items entering 
the cost of doing business except depreciation and ''power 
for mill." Because of the great variety of methods used by 
dealers in figuring these items it seemed best to omit them 
from this tabulation. 

Note : The lumber costs given on this and the five fol- 
lowing pages are taken from "How to Run a Retail Lumber 
Business at a Profit," another Shaw publication. 



INSERT V 



NORMAL ANNUAL TEMPERATURE (Fahrenheit) 



'-■^.^.. 







COMPILED FROM OBSERVATIONS AT 
THE REGULAR V/EATHER BUREAU 

AND SELECTED COOPERATIVE STATIONS 
UNITED STATES DEPT. OF ASRICULTURE 




® 



S^n&i>o,, ' NORMAL ANNUAL PRECIPITATION 


( Inches ) | 


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COMPILED FROM OBSERVATIONS AT \ \5° s^^N 




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THE REGULAR WEATHER BUREAU V 1 "\\ 




(B) 


AND SELECTED COOPERATIVE STATIONS ^^ vN 




vbx 


UNITED STATES DEPT. OF AGRICULTURE « ijso 






-fs- 







Insert V: \n many lin 
tacts regarding climatic conditions are highly desirable, 
not absolutely necessary, before effective selling pwUcies ai 
plans can be decided upon. You see indicated here the avc 



age, low, and high temperatures (Figure A) and the average lowing example will illustrate the manner of reading Figure 

precipitation for each section of the country (Fgure B). B. To find the rainfall of Texas: Beginning with the ex- 

These averages, PjUblished by the Government Weather treme eastern portion of .the coast, it will be found that a 

Bureau, at Washington, cover a period of 20 years. The fol- line marked 50 'nches curves northeastward into Louisiana, 



he southwest corner of the the only portion of the State of Texas having an annual pre- by the various lines marked "45," "40," "35,' 

State of Arkansas. Directly east of this line is another line cipitation of 50 inches and over is found directly east of the but after the line of 20 inches is reached the i 

marked 55 inches. The average annual rainfall between the line first mentioned. West of this line the precipitation comes somewhat irregular, and the fall finally is reduc 

two lines ranges, therefore, between 50 and 55 inches, and diminishes, from east to west, regularly at first, as indicated about 10 inches in the extreme western part of the 



RETAIL DATA AND FIGURES 155 

INDICATIVE COSTS IN SMALL CITY YARDS 

(Population 5,000 to 50,000) 

(Figures for 1916) 

Indicated Indicated 

typical attainable 

Items costs costs 

Salaries 4.37% 4.32% 

Rent 1.49% .66% 

Handling stock 5.42% 4.47% 

Advertising 34% .24% 

Heat and light 13% .07% 

Supplies 29% .34% 

General expense. 1.37% 1.02% 

Insurance and taxes . 92% . 82% 

Bad debts. .74% .67% 

Total 15.07% 12.61% 

In small cities the better handled yards evidently have 
effected definite reductions on the items of rent, handling 
stock, heat and light, and general expense. Supplies, how- 
ever, seem to run somewhat higher than the other items. 

INDICATIVE COSTS IN SMALL CITY YARDS 

(Population 50,000 to 100,000) 

(Figures for 1916) 

Indicated Indicated 

typical attainable 

Items costs costs 

Salaries 4.00% 3.30% 

Rent 1.58% 1.19% 

Handling stock 6.27% 6.34% 

Advertising 1 .05% 1 .50% 

Heat and light 27% .25% 

Supplies 1 . 10% . 54% 

General expense .86% .35% 

Insurance and taxes .85% .63% 

Bad debts. : .77% .50% 

Total 16.7.5% 14.60% 

In cities of 50,000 to 100,000 population the indicated 
attainable cost standards on the items of handling stock and 



156 



GRAPHIC SALES ANALYSIS 



advertising run higher than the figures on the same items 
for the typical yard. The attainable total costs, however, 
because of the savings on other items, were over 2% less 
than the total costs for the typical concerns. 



INDICATIVE COSTS IN LARGE CITY YARDS 

(Population 100,000 and over) 

(Figures for 1916) 

Indicated Indicated 

typical attainable 

Items costs costs 

Salaries 4.94% 4.55% 

Rent 1.21% 1.08% 

Handling stock 7.02% 5.87% 

Advertising 31% .23% 

Heat and light 08% .06% 

Supplies 72% .34% 

General expense 1 . 50% 1 . 90% 

Insurance and taxes -91% .97% 

Bad debts .75% .66% 

Total 17.44% 15.66% 

In large city yards cost reductions apparently have been 
obtained on every item listed. This is especially true of 
handling stock. Evidently the volume of business has in- 
duced the better managed concerns to invest heavily in 
labor-saving equipment, including trucks, of course, and the 
resulting savings seem to run about 2% under the total figure 
for the less efficiently managed yards. 



HOW COSTS ROSE IN ONE YEAR 
(Figures from three typical retail lumber dealers) 
Dealer 1916 costs 1917 costs Net increase 

1 17.69% 23.00% 5.31% 

2 7.73% 9.66% 1.93% 

3 8.89% 11.90% 3.01% 

Costs of doing business show an unprecedented increase 
in one year for the three dealers whose costs are given here, 
and their figures are typical of yards the country over. 



RETAIL DATA AND FIGURES 



157 



COST OF SALARIES IN RETAIL 
LUMBER YARDS 

Indicated Indicated 

typical attainable 

Population of city costs costs 

Under 5,000 5.20% 5.00% 

5,000 to 50,000 4.37% 4.32% 

50,000 to 100,000 4.00% 3.30%o 

Over 100,000 4.94% 4:. 55% 

Percentages indicated here for salaries cover the cost of 
office employees, salesmen, and executives. Salaries appar- 
ently require a higher percentage of total sales in the small 
town than in the large city yard. Yards in cities of 50,000 
to 100,000 population seem to carry the lowest average. 
However this item of expense is lower in the lumber busi- 
ness than in most retailing lines. 

COSTS OF RENT 

Indicated Indicated 

typical attainable 

Population of city costs costs 

Under 5,000 79%, .64% 

5,000 to 50,000 1.49% .66% 

50,000 to 100,000 1.58% 1.19% 

Over 100,000 121% 1.08% 

Yards in medium-sized cities apparently pay more for rent 
than dealers in the other three classifications. But a good- 
sized rental expenditure frequently is advisable, it was found 
by investigation, because of the increased business often 
attainable through a better location. 



LABOR COSTS 

Indicated Indicated 

typical attainable 

Population of city costs costs 

Under 5,000 4.53% 3.24% 

5,000 to 50,000 5.42%, 4.47% 

50,000 to 100,000 6.27% 6.34% 

Over 100,000 7.02% 5.87% 



158 GRAPHIC SALES ANALYSIS 

Labor costs, while high, as indicated in the table given 
on the preceding page, apparently are rising steadily every 
day. These costs evidently increase in direct proportion to 
the size of the town in which the yard is located. Investiga- 
tions, however, have revealed many effective methods which 
have been worked out successfully by business men to help 
dealers reduce this big item of expense. 

RETAIL LUMBER DEALERS COST OF ADVERTISING 

Indicated Indicated 

typical attainable 

Population of city costs costs 

Under 5,000 .38% .55% 

5,000 to 50,000 34% .24% 

50,000 to 100,000 1.05% 1.50% 

Over 100,000 31% .23% 

Well-managed country yards and yards in cities of 50,000 
to 100,000 population are spending more for advertising than 
typical yards in the same group. Large city yards evidently 
carry the lowest percentage for advertising and country 
yards the highest. This fact is due, undoubtedly, to the 
greatly increased volume of sales in the city yards which 
tends to reduce the proportionate cost of all the items of 
overhead expenses. 

COSTS OF HEAT AND LIGHT IN LUMBER YARDS 

Indicated Indicated 

typical attainable 
Population of city costs costs 

Under 5,000 10% .11% 

5,000 to 50,000 13% .07% 

50,000 to 100,000 27% .25% 

Over 100,000 08% .06% 

The cost of heating is difficult to regulate, according to 
most retail lumber dealers. Climatic conditions, of course, 
influence these costs to a great extent. The cost of lighting^ 
however, can be cut down in most instances and economical 
methods are available which the retailer can put into oper- 
ation with but slight effort. 



RETAIL DATA AND FIGURES 159 

COSTS OF SUPPLIES 

Indicated Indicated 

t typical attainable 

Population of city costs costs 

Under 5,000 25% .37% 

5,000 to 50,000 29% .34% 

50,000 to 100,000 1 . 10% .54% 

Over 100,000 72% .34% 

Costs of supplies are indicated to range from .25% of gross 
sales (reported by country yards) to 1.1% — ^the figure 
reported l^y dealers in medium-sized cities. Note that indi- 
cated attainable costs of supplies are not always lower. 

COSTS OF GENERAL EXPENSE 

Indicated Indicated 

typical attainable 

Population of city costs costs 

Under 5,000 1.22% .94% 

5,000 to 50,000 1.37% 1.02% 

50,000 to 100,000 86% .35% 

Over 100,000 1.50% 1.90% 

Costs of general expense are indicated to vary considerably, 
according to the figures submitted. Many dealers reported 
much larger costs than those given in this table. Probably 
this was due to a failure to subdivide the accounts com- 
pletely and accurately. 

COSTS OF INSURANCE AND TAXES 

Indicated Indicated 

typical attainable 

Population of city costs costs 

Under 5,000 .81% .75% 

5,000 to 50,000 92% .82% 

50,000 to 100,000 85% .63% 

Over 100,000 91% .97% 

Costs of insurance and taxes can be reduced, according to 
dealers whose figures are classified under * 'indicated attain- 
able costs. '^ All of the attainable figures, you will note, are 
less, excepting those in cities over 100,000. Insurance risks 
apparently are greater in large cities. 



160 GRAPHIC SALES ANALYSIS 

DEATH RATE OF RETAILING CONCERNS 

Dry goods merchants in business 5 years or less . . 17-68% 

Jewelers in business 5 years or less 13-50% 

Shoe dealers in business 5 years or less 23-49% 

Hardware dealers in business 5 years or less 10-48% 

Meat dealers in business 5 years or less 36-48% 

Grocers in business 5 years or less 76-45% 

Druggists in business 5 years or less 17-43% 

Cigar dealers in business 5 years or less 18-39% 

Furniture dealers in business 5 years or less 8-38% 

Clothiers in business 5 years or less 14-35% 

The most startling mortality figures come from retail 
lines. Would it be worth money to you to feel certain that 
all your retail customers were such good business men that 
they would stay in business for a long time? The answer 
suggests the value of these figures. 

DEATH RATE BY "GENERATIONS" FOR 
10 RETAIL LINES 

(Percentage of total concerns in each ''generation" 

which died within 5 years) 

Line 1891 1896 1901 1906 1911 

Groceries 44% 61% 56% 61% 63% 

Hardware 40% 45% 50% 36% 66% 

Paintsandwallpaper 62% 57% 40% 55% 69% 

Drugs 37% 51% 45% 30% 39% 

Books and stationery 75% 57% 50% 50% 38% 

Jeweky 33% 46% 36% 41% 65% 

Dry goods 50% 59% 65% 57% 39% 

Clothing 45% 80% 40% 52% 56% 

Boots and shoes.... 53% 53% 48% 57% 58% 

Furniture 70% 50% 37% 62% 61% 

This table shows the death rate by generations of the 10 
retail lines that were investigated. Totals such as these 
impress us with the seriousness of the problem and empha- 
size the necessity of keeping a whip-handle grip at all times 
on those facts and principles which have a fundamental and 
vital bearing on the permanency of any business. 



RETAIL DATA AND FIGURES 161 

HOW FAST 1,615 RETAIL STORES DIED 

Deaths within 

Total 5 10 15 20 25 

Line deaths years years years years years 

Groceries 836 614 125 59 30 8 

Hardware 74 48 15 6 4 1 

Paints and wall 

paper 78 58 15 3 2 

Drugs 115 69 30 13 2 1 

Books and station- 
ery 43 29 12 1 1 

Jewelry 52 38 9 3 ... 2 

Dry goods 142 108 19 10 3 2 

Clothing 52 41 9 1 ... 1 

Boots and shoes. ... 177 121 32 17 6 1 

Furniture 46 35 6 4 1 ... 

The majority of retail stores that "died" went out of 
business in the first five years, as the above table shows. 
Grocery stores, you will note, have the greatest number of 
''deaths/' most of which occur during the concern's first five 
years of business life. Furniture concerns apparently are 
the longest 'lived" of these retail lines. 

DEATH RATE FOR 2,550 RETAIL CONCERNS 

(The rate is given as the percentage of failures to the 
concerns in business during a period of 30 years total) 

Line Rate 

1. Groceries 65.3% 

2. Hardware 57.3% 

3. Paints and wall paper 66 . 6% 

4. Drugs 58.3% 

5. Books and stationery 67 . 1% 

6. Jewelry 52.0% 

7. Dry goods 67.6% 

8. Clothing 54.7% 

9. Boots and shoes 65 . 0% 

10. Furniture 53.4% 

Death rate for 2,550 retail stores in 10 lines ... 58 . 6% 



HOW FAST THREE 'GENERATIONS" OF RETAIL CLOTHING STORES DO. 


COMPANY 


1891 


1898 


1901 


1906 


1911 


1916 


{)£ATH RECOROJ 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 














First 

-eefleratjoir 

45%<Jted 

wttto»5yeais 




































































































































21 
22 
23 
24 

25 
26 
27 
28 
,29 
30 














Second 

80%i»ed 
witbiaSyears 
































31 
32 
33 
34 
35 
36 
37 
38 
39 
-40 
41 
42 
43 
44 
45 














TMr* 

•feneration 

49%«cd 

wit&iaSyeafs 













































































Figure 53: Between 1886 and 1901, 45 clothing stores started in busi- 
ness in one section, but only 15 were in busihess at the end of 1916, 
The highest percentage death rate, as you will note, appeared among 
those concerns which started their business life in the second generation. 

162 



■pjHg-TrT i ^ t-iiujigg.i.Mitftii^ )iif ^.^.ir;^ ' .; ' •■'.■ 



TTm 



1900 






X 



S5ik-sli*^yl3 




)smi 



-\y:. 



^' ^ 'U. )i_ ' 



^ 



Figure 54: Here is shown an actual business death rate. Of 33 fac- 
tories, 19 grocery stores, and 7 wholesale or jobbing establishments 
which were going businesses 30 years ago, there survived in 1915 only 
3 of the factories, 2 wholesale concerns, and not even one grocery. 

163 



164 



GRAPHIC SALES ANALYSIS 



,«.n ^fl^i^ra^Miisi)^ 



,««. f=^mrhm<sf^^f=(\mF7)Wkm 



1900 

190.^ 

1911 



niiTi^shfilR^ mnm 



/rz 



'^■aksJisiMEia 



1 



-#.^ 



r^Hfiilii 



P Overbuying a Poor Location O Bad Accounting 
X Poor Collection Methods . Z Lack of Capital 



Figure 5 5 : This chart, the right half of which is shown directly opposite, 
indicates some of the most important of the underlying causes, such as 
overbuying, poor location, and so on, of the business death rate. 

This table, and those given on pages 168, 169, 170, and 171 
are from ''The Economics of Retailing," by Paul H. Nystrom, 
and present additional facts pertaining to business mortality. 
The investigation was carried on in several cities presenting 
a background of normal growth and conditions. 

CHANGES IN RETAIL DEALERS IN OSHKOSH 
FROM 1890 TO 1912 



Existing 






















stores, 


1890 145 


117 


91 


73 


50 


37 


29 


27 


18 


18 


new firms 


1893 


. 43 


24 


18 


15 


12 


11 


9 


8 


8 


(C (I 


1895 




61 


33 


20 


19 


17 


16 


13 


9 


11 n 


1898 






52 


34 


26 


20 


15 


15 


13 


11 (( 


1900 








45 


31 


19 


13 


10 


9 


({ (I 


1903 










34 


24 


19 


16 


13 


U 11 


1905 












32 


19 


13 


10 


l< tl 


1908 














35 


24 
41 


20 


it u 


1910 














34 


U (I 


1912 
















38 



Summary 



145 160 176 176 164 160 152 153 158 172 



RETAIL DATA AND FIGURES 



165 



vfn{r5iir°lf^tRl^iriimfm.r^!io 



rf^fi^WfT-^fffifi^ 




The data for this chart (and the portion opposite) cross-sections the 
history of hundreds of concerns for 30 years. It is quite obvious 
that certain fundamental causes are unusually destructive in each line. 

WILL MY STORE KEEP GOING FOR 15 YEARS? 

Chances in 10 to live : 

Line 10 Years 15 Years 

Groceries 4.3 2.8 

Hardware 5.8 4.0 

Paints and wall paper 4.6 2.5 

Drugs 5.9 3.8 

Books and stationery 4.3 1.2 

Jewelry 6.5 4.7 

Dry goods 4.4 3.1 

Clothing 4.8 3.4 

Boots and shoes 4.8 3.1 

Furniture 4.2 2.9 



These business mortality figures are interesting because 
they indicate tendencies at first they might appear as start- 
ling but when it is considered that the law of the survival of 
the fittest has been applied it will be seen that there is 
nothing particularly surprising about them. 



166 GRAPHIC SALES ANALYSIS 

CAUSES FOR DISCONTINUING BUSINESS 
Cause Number of stores 

Death 24 

Retired because of ill-health 1 

Bankruptcies handled by courts 6 

Failures or fizzles 124 

Sold out, probably representing losses 27 

Sold out, representing gains 14 

Retired with competences 5 

Total 201 



This table suggests where the merchants of today are 
coming from. Practically every man thinks he can "run a 
store." Perhaps a glance at these facts and the death rate 
figures shown in this volume would set some men thinking. 

OCCUPATIONS OF OSHKOSH MERCHANTS 
BEFORE GOING INTO PRESENT BUSINESS 

Druggists : 

Drug clerks 11 

Jewelry : 

Watchmakers 6 

General tinker 1 

Tailor 1 

Factory hand 1 

Shoes: 

Shoe clerks 11 

Cobblers 6 

Grocery clerk 1 

Factory hand 1 

Barber 1 

Hardware : 

Hardware business formerly 2 

Hardware store salesmen 2 

Tinsmiths 2 

Traveling salesmen 1 

Furniture manufacturer 1 

Iceman 1 



RETAIL DATA AND FIGURES 167 

FORMER OCCUPATIONS OF MERCHANTS, Continued 

Clothing : 

Clothing store clerks 9 

Dry goods clerks 3 

Grocery clerk 1 

Saloonkeeper 1 

Dry Goods: 

Merchants before 3 

Dry goods clerks ,3 

Pedler 

Grocer 

Farmer 

Shoe merchant 

Carpenter 

Housewife 

Furniture: 

Cabinetmakers 2 

Clerks in furniture store 3 

Factory worker 1 

Farmer 1 

Grocers : 

Grocery clerks 16 

Factory hands 16 

Housewives (widows) 9 

Farmers 9 

Grocers in other places 8 

Butchers 4 

Bakers 3 

Milkmen 3 

Carpenters 2 

Traveling salesmen 2 

Saloonkeepers 2 

Musicians 2 

Section man on railway 

Motorman 

Blacksmith 

Cigarmaker = 

Shoemaker 

Machinist 

Sewing machine agent 

Policeman 

Grain buyer 

Coal merchant 



168 GRAPHIC SALES ANALYSIS 

These figures were collected some years ago, to be sure, but 
the averages and tendencies they indicate are probably just 
as accurate today as they were then. 

CHANGES IN RETAIL FIRMS IN JANESVILLE 
DURING 10 YEARS 

Total retail stores in 1890 1896 1898 1900 

Total stores, 1890 63 31 28 23 

New firms, 1896 48 29 23 

New firms, 1898 17 6 

New firms, 1900 ll'-^ i:.- • • 25 

Summary 63 79 74 77 

CHANGES IN RETAIL FIRMS IN LACROSSE 
DURING 10 YEARS 

Total retail stores in.. 1893 1895 1897 1900 1901 1903 

Total stores, 1893... 181 124 108 95 82 71 

New firms, 1895 55 29 23 19 16 

New firms, 1897 33 21 17 14 

New firms, 1900 34 17 14 

New firms, 1901 31 14 

New firms, 1903 _^. . .^^. . . ^^. . .^^. . .^^. . 35 

Summary 181 179 170 173 166 164 

CHANGES IN RETAIL FIRMS IN BELOIT 
DURING 10 YEARS 

Total retail stores in 1890 1896 1900 

Total stores, 1890 46 27 19 

New firms, 1896 25 15 

New firms, 1900 ^ _^. . . .^. . . 22 

Summary 46 52 56 

CHANGES IN RETAIL FIRMS IN EVANSVILLE 
DURING 10 YEARS 

Total retail stores in 1890 1896 1900 

Total stores, 1890 14 7 5 

New firms, 1896 10 4 

New firms, 1900 ^. . . . ^. . . _6 

Summary 14 17 15 



^ RETAIL DATA AND FIGURES 169 

CHANGES IN RETAIL FIRMS IN EDGERTON 
DURING 10 YEARS 

Total retail stores in 1890 1896 1900 

Total stores, 1890 21 9 7 

New firms, 1896 7 4 

New firms, 1900 ^ ^. . . _5 

Summary 21 16 16 

CHANGES IN RETAIL FIRMS IN CLINTON 
DURING 10 YEARS 

Total retail stores in 1890 1896 1900 

Total stores, 1890 15 8 7 

New firms, 1896 7 1 

New firms, 1900 ^ ^. . . 1_ 

Summary 15 15 15 

These compilations of the causes of failures are also taken 
from "The Economics of Retailing,'^ by Paul H. Nystrom. 

BRADSTREET'S CLASSIFICATION OF 
BUSINESS FAILURES 
Beginners' Handicaps: 

1. Lack of capital 29 . 7 

2. Incompetence 30 . 2 

(a) Inexperience 4.6 

(b) Unwise credits 2.0 

66.5 
Personal Faults of Character: 

1. Fraud , 10.3 

2. Neglect of business 2.0 

3. Personal extravagance ,1_ 

13.0 
Factors Threatening Success: 

1. Competition 1.9 

2. Failure of others 1.3 

3. Speculation in other business 8 

4. Specific conditions (disaster, and so on) 16.5 

210 



170 GRAPHIC SALES ANALYSIS 

CLASSIFICATION OF CAUSES OF FAILURES 
IN THE RETAIL BUSINESS 
Beginners' Handicaps: 

Lack of capital 29 . 5 

Incompetence (including inexperience) 24 . 

Unwise credits 4.4 

General expense too high 3.0 

Poor location 2.2 

Expansion (branch stores) 2.0 

65Tl 
Personal Faults op Character: 

Fraud 4.0 

Neglect of business 4.0 

Personal extravagance 4.8 

Intemperance 2.0 

iO 

Factors Threatening Success: 

Loss by storm, flood, fire, and so on 3.8 

Sickness 3.5 

Failure of others. 2.6 

Speculation 2.1 

Competition 1.4 

Closed by ''sharks" 1.2 

Robbery of store 1.0 

Death .8 

Loss in contracts 8 

Miscellaneous causes 2.9 

207l 

There's no questioning the value of information like this 
(from "The Economics of Retailing") in regard to any 
product. Data on the per capita consumption is necessary, 
most sales managers agree, to the most effective planning of 
selling and advertising drives. 

CONSUMPTION PER CAPITA 

Sugar pounds 81 . 6 Cotton pounds 20 . 

Coffee pounds 10 . Tobacco . . . pounds 5 . 7 

Cocoa pounds 1 . 25 Soda water $1 . 20 

Tea pounds 1.4 Crackers $1 .00 

Shoes $8.44 Flavoring extracts. $1 .00 

Wool pounds 5 . 25 



RETAIL DATA AND FIGURES 171 

SOME ESTIMATED PER CAPITA CONSUMPTIONS 
IN THE UNITED STATES 

Percentage of 
increase or 
Per capita decrease since 
Line consumption 1875 

Wheat bushels 6.48 + 86.1 

Corn bushels 27.3 + 52.5 

Sugar pounds 79.9 +107.9 

Wool. pounds 6.32 + 59.2 

Cotton pounds 24.8 +144.5 

Coffee pounds 9.33 + 28.7 

Tea pounds 0.89 + 38.2 

Rice pounds 5.24 — 21.4 

Bread loaves 52.7 - 41.8 

Flour and meal pounds 142:i3 + 43.7 

Fresh beef pounds 73.1 + 59.3 

Salt beef pounds 11.5 + 21.4 

Fresh pork pounds 23.7 + 61.2 

Salt pork pounds 23.1 + 18.4 

Other meat pounds 16.2 + 72.3 

Poultry pounds 14. 1 +49.2 

Fish pounds 16.6 + 33.4 

Eggs dozens 17.7 + 62.4 

Milk. quarts 74.1 + 43.7 

Butter pounds 24.4 + 54.3 

Cheese pounds 3.3 + 12.4 

Lard pounds 17.5 + 18.7 

Molasses gallons 0.75 + 13.2 

Potatoes bushels 3.1 + 18.1 

Fruits $ 4.26 + 52.3 

Men's clothing (per adult male) . . $27 . 77 + 49 . 7 
Women's clothing (per adult 

woman) $20.37 + 54.3 

Children's clothing (per child 

under 10) $ 3.05 + 65.9 

Fuel $ 8.01 + 43.7 

Lighting $ 2 .03 +37.2 

Furniture $ 8.33 + 63.8 

Books and papers $ 2.05 + 72.5 

Life insurance $ 6.67 + 71.3 

Malt liquors gallons 19.75 +185.5 

Tobacco $ 8.44 + 85.2 



172 GRAPHIC SALES ANALYSIS 

INCOME TAXES 

The total of income taxes as shown here are the latest 
available on publication of this book. New York leads all 
the others, both in corporation and individual taxes. 

States Corporation Individual 

Alabama $ 887,906.92 $ 200,385.29 

Alaska 49,132.34 20,772.03 

Arizona 637,993.92 200,330.75 

Arkansas 306,310.84 179,413.47 

California 6,147,289.14 3,870,314.24 

Colorado 1,789,597.94 1,060,075.91 

Connecticut 3,872,638 . 48 3,050,912 . 00 

Delaware 2,791,067.72 3,666,351 .92 

District of Columbia 579,311.46 1,186,133.33 

Florida 227,655.04 305,879.91 

Georgia 1,218,831.39 611,777.89 

Hawaii 909,818.58 363,880.70 

Idaho 217,479.58 176,711.97 

Illinois. 14,359,537.16 11,739,952.41 

Indiana 2,261,049.58 1,233,845.52 

Iowa 1,252,297.30 555,247.24 

Kansas 2,349,847 . 01 568,181 . 91 

Kentucky 1,252,485.55 393,271 .63 

Louisiana 1,269,121.11 813,542.12 

Maine. 815,750.20 377,375.05 

Maryland 1,401,954.27 1,947,336.47 

Massachusetts 9,320,716 . 63 10,959,847 . 50 

Michigan 6,565,769 . 68 3,627.884 . 25 

Minnesota 4,618,464.76 1,814,431.33 

Mississippi 246,829 . 38 197,456 . 70 

Missouri 4,596,170.35 2,516,416.54 

Montana 776,719.99 298,627.47 

Nebraska 779,615.94 368,710.97 

Nevada 75,423.06 15,425.53 

New Hampshire 283,937 . 07 236,565 . 38 

New Jersey 5,250,581 . 86 5,621,910 . 08 

New Mexico 300,134.14 82,760.87 

New York 46,566,951 . 90 81,495,783 . 31 

North Carolina 1,232,609 . 13 551.189 . 51 

North Dakota 218,771 . 77 74,159 . 64 

Ohio 12,873,403.13 8,066,088.77 

Oklahoma 2,231,436. 18 4,428,842.32 



RETAIL DATA AND FIGURES 173 

INCOME TAXES, Continued 

States Corporation Individual 

Oregon $ 406,931.70 413,684.24 

Pennsylvania 24,238,266.36 17,860,341 . 18 

Rhode Island 1,339,290 . 50 1,860,676 . 67 

South Carolina 498,116. 17 81,874.28 

South Dakota 182,248 . 15 49,164 . 33 

Tennessee 942,090 . 87 438,684 . 27 

Texas 2,611,153.93 2,781,779.69 

Utah 1,148,676.94 181,344.05 

Vermont 184,547.33 369,879.07 

Virginia 1,837,125.64 621,507.06 

Washington 1,187,702 . 79 855,286 . 77 

West Virginia 1,460,908.97 460,138.63 

Wisconsin 2,716,523 . 54 1,179,826 . 21 

Wyoming 184,694.47 66,361.72 

Total $179,572,887 . 86 $180,108,340. 10 

An annual report of the Conamissioner of Internal Revenue 
shows the following incomes that paid fees under the income 
tax law. Taxes were paid to the Government by 357,515 
persons. Of this number, 282,806 were married men, 
51,729 were single men, 22,980 were single women, and 
3,985 were married women who made separate returns. 

FEDERAL INCOME TAX PAYERS 

(Incomes that paid tax) 

174 incomes exceeding $500,000 

69 between $400,000 and $500,000 

147 between $300,000 and $400,000 

130 between $250,000 and $300,000 

233 between $200,000 and $250,000 

406 between $150,000 and $200,000 

1,189 between $100,000 and $150,000 

1,501 between $ 75,000 and $100,000 

3,660 between $ 50,000 and $ 75,000 

3,185 between $ 40,000 and $ 50,000 

6,008 between $ 30,000 and $ 40,000 

5,483 between $ 25,000 and $ 30,000 

8,672 between $ 20,000 and $ 25,000 

15,790 between $ 15,000 and $ 20,000 



174 GRAPHIC SALES ANALYSIS 

FEDERAL INCOME TAX PAYERS, Continued 

(Incomes that paid tax) 

34,141 between $ 10,000 and $ 15,000 

127,448 between S 5,000 and $ 10,000 

66,525 between $ 4,000 and $ 5,000 

82,754 between $ 3,000 and S 4,000 

How do American families spend their incomes? Until a 
few years ago luxuries were ''in the limeUght." Then came 
a period when American famihes bought few luxuries, and 
the necessities of life were primary. Then again came an 
unusual demand for luxuries, and with it, what many termed 
a disregard for the necessities. Where will it stop? What 
will the demand be in the years to come — for necessities or 
for luxuries? 

If merchandise is to have in it a selling idea, according to 
some progressive business men, it must represent utility. 
It may be interesting, therefore, to see in this table just 
how American families are spending their incomes. Luxuries 
are, of course, included under the miscellaneous column. 



PERCENTAGE OF TOTAL EXPENDITURES 

Mis- 
Fuel eel- 
Cloth- and lane- 
Food ing Rent light ous 

Under $200..... 50.9 8.7 16.9 8.0 15.6 

$ 200 up to $ 300 47.3 8.7 18.0 7.2 18.8 

300 up to 400 48.1 10.0 18.7 7.1 16.1 

400 up to 500 46.9 11.4 18.6 6.7 16.5 

500 up to 600 46.2 12.0 18.4 6.2 17.2 

600 up to 700 43.5 12.9 18.5 5.8 19.4 

700 up to 800 41.4 13.5 18.1 5.3 21.6 

800 up to 900 41.4 13.6 17.1 5.0 23.0 

900 up to 1,000 39.9 14.4 17.6 5.0 23.2 

1,000 up to 1,100 38.8 15.1 17.5 4.9 23.7 

1,100 up to 1,200 37.7 14.9 16.6 4.7 26.1 

1,200 and over 36.5 15.7 17.4 5.0 25.4 

Average. 43.1 13.0 18.1 5.7 20.1 

(Investigated by the United States Bureau of Labor) 



RETAIL DATA AND FIGURES 175 

BUYING 
Analysis of Expenses of an Average American Family* 

Fresh beef $50.25 

Salt beef 5.26 

Fresh hog products 14.02 

Salt hog products 13 . 89 

Vinegar and pickles 4.12 

Other food 20.40 

Other meat 9.78 

Poultry 9'. 49 

Fish 8.01 

Eggs 16.79 

Milk 21 . 32 

Butter 28.76 

Cheese 2.62 

Lard 9.35 

Tea and Coffee 16.04 

Sugar 15.76 

Molasses 1 . 69 

Flour and meal 16 .76 

Bread 12.44 

Potatoes 12.93 

Other vegetables 20.90 

Fruit 16 . 52 

Rent 99.53 

Principal and interest on mortgage 12 . 15 

Taxes 5 . 75 

Insurance 20 . 98 

Fuel and Hghting 40.36 

Lighting 8.15 

Clothing 107.90 

Organization fees 8 . 90 

Religious purposes 7 . 60 

Charity 2.39 

Furniture and utensils 26 . 28 

iVmusements and vacations 12 . 30 

Books and newspapers 8 . 38 

Intoxicating liquors 12 . 45 

Tobacco 10.91 

Sickness and death 20 . 52 

Other purposes 45 . 14 

Total for all purposes $768.64 

♦From the Eighteenth Annual Labor Report of the United States Bureau of Labor. 



INDEX 



Administrative salaries and wages 61 

ADVERTISING 

—costs 54, 56, 132, 158 

Agricultural implement industry 20, 23 

American families, expenditures of 

175, 176 

Associations 

— National Dry Goods Association 135 
— Southern Wholesale Grocers' 

75, 76, 77, 78. 79 

Automobile industry 27, 28 



BAD DEBTS 

—cost of 68, 130 

Bookstores, costs of 152 

BOOTS AND SHOES 

— manufacturing 24 

—retail 151, 152 

— wholesale 41, 42 

Bradstreet's c lassification of business 

failures 169, 170 

Butter, cheese, and condensed milk 

industry 23 

Buying, power of American 
families 175, 176 



Chain stores, by lines 105, 106, 107 

Changes in retail firms 168, 169 

Cherington, Professor P. T. 10 

CLOTHING 

— men's ready-to-wear 16, 17 

— production costs 17 

— retail costs 146, 147 

— wholesale costs 40, 44, 45,49-53, 74 
— women's, manufacturers of 17, 18 

Comparative cost figures from whole- 
sale dealers 33-79 

Consumption of products, per capita 

170, 171, 172 

Cost averages and expenses from the 

books of 1,569 concerns 138-152 

COSTS 

— administrative salaries and wages 

57, 58 
— advertising 56, 58, 132, 158 

— ^bad debts 68, 130 

— book store 152 

— deUvery 130, 131, 132 

— depreciation and shrinkage 125 

— general expense 128, 158, 159 

— ^insurance and tax 67, 135, 159 

— labor (See Salaries also) 157 

— light, heat, and power 

63, 64, 127, 128, 158 



— office expense 56, 57 

—of salaries 61, 62, 109, 157 

— packing and shipping *'>2 

— production 1-26 

—rent 63, 157 

—retail 89-159 

—clothing 146, 147 

—drugs 147, 148 

—dry goods 138, 139, 140 

—furniture 148, 149 

—grocery 140, 142, 143 

— hardware 146 

— jeweh-y 149, 150, 151 

—lumber 153-160 

—shoe 151, 152 

— selhng at retail 103, 104, 105 

—supply 127, 159 

— ^variety store 145 

— ^vehicle store 143, 144 

—wholesalers' 33-84 

— wholesale 

— boots and shoes 41, 42, 43, 54, 

57, 58, 61, 62, 63, 64, 67, 68, 69, 73 

—clothing 40, 53, 54, 56, 57, 58, 

61, 62, 63, 64, 67, 68' 74 

—drugs 37, 40, 45, 48, 53, 54, 57, 

58. 61, 62, 63, 64, 67, 68 69, 73 

--dry goods 37, 40, 50, 52, 63, 56, 

57, 58, 61, 62, 63, 64, 67, 68 73, 74 

—electrical goods 40, 49, 50, 63, 54. 

56, 57, 58, 61, 62, 63, 64, 67, 68, 

70, 71, 75 

—grocery 36, 37, 40, 42, 43, 44, 64, 

66, 57, 58, 61, 62, 63, 64, 67, 6S, 

69, 70, 72, 75. 76, 77, 78, 79 

—hardware 37, 40, 48, 49, 53, 64, 

56, 57, 58, 61, 62, 64, 67, 68, 

69, 71, 72, 74, 75 

— jewelry 37 

—selling 52, 53 

— ^totals, by lines 52 

Cotton industry 18 



"DEATH RATE" RECORD 

— of factories 3, 4, 5 

—of retail concerns 160, 161, 162, 163, 

164, 165 

— of wholesale concerns 80, 81, 82, 83, 

84 
Delivery costs 130, 131, 132 

DEPARTMENT STORES 

— costs and profits of 122 

Depreciation and shrinkage costs 125 

DRUGS 

—retail 147, 148 

—wholesale 37, 40, 45, 43-69 



177 



178 



INDEX 



DRY GOODS 

— retaU 138, 139, 140 

—wholesale 37, 3S, 50-6S, 73. 74 

Dyestuffs and extracts 25 



JEWELRY 




—retail 


149, 150, 151 


— wholesale 


37 



ELECTRICAL GOODS 

—wholesale 40, 49, 50, 53, 54, 56, 57, 
5 . 61, 62, t 3, 64, 67, 68, 70, 71, 75 
Expectancy of life for a new manu- 
facturing business 4 
Expenditures of American families 

175, 176 
Expense (See Costs) 



Labor Costs (See Salaries also) 157 

Leather industrj- 26, 27 

Light, heat, and power costs 

63, 64, 127, 128, 15S 

LUMBER 

— manufacturing 24 

—retail 153-159 



Factories (See Manufacturing and 

Production) 
Flour and grist roill industry 23, 24 

FURNITURE STORES 

— costs in 148, 149 



General expense 57, 58, 128, 159 

GROCERIES 

—retail 140, 142, 143 

—wholesale 36. 37, 40, 42, 43, 44, 

53-72. 75-79 



H 

HARDWARE 

—retail 145, 146 

— wholesale 

37, 40, 48, 49. 53-69, 71, 72, 74 
Heat, light, and power costs 

63, 64, ir7, 128, 158 
Hoaiery and knit goods industry 18, 19 



M 

MANUFACTURERS 

— men's ready-to-wear clothing 16, 17 
— per capita figures by lines 9, 10 

— total number in United States 29, 30 
— woolen 9—19 

— worsted 11-18 

MANUFACTURING CONCERNS 
— commercial mortality figures for 

3, 4, 5 
— co-t fig-ures 3-26 

— expectancy of life of 3, 4, 5 

— raw materials for 

18, 19, 20, 23, 24, 25, 26, 27, 28 

Massachusetts, trading concema of 

100. 103 

Men's clothing 16, 17 

MERCHANTS 

— former occupations of 166, 167 

— ratio of, to population (See also 

Retail and Wholesale dealers) 93 



N 

National Dry Goods Association 



135 



I 

Income taxes 173, 174, 175 

INDUSTRY 

— agricultural implement 20, 23 

— automobile 27, 28 

— boot and shoe 24 

— butter, cheese, and condensed milk 

23 
— cotton 18 

— dyestuffs and extracts 25 

— flour and grist mill 23, 24 

— hosiery and knit goods 18, 19 

— iron and steel 20 

—leather 26, 27 

— lumber 24 

— paints and varnish 25, 26 

— paper and wood pulp products 28 
— per capita figures by lines 9, 10 

— petroleum refining 26 

—silk 20 

— slaughtering and meat packing 23 
— sugar 23 

—wool 10-19 

Iron and steel industry' 20 

Insurance and tax costs 67, 135, 159 



Occupation of merchants before going 

into present business 166, 167 

Office expense 56, 57 



Packing and shipping costs 62, 63 

Paints and varnish industry 25, 26 

Paper and wood pulp industry 28 

Petroleum refining 26 

Population ratio of, to merchants 93 

Power costs (See Light, Heat and Power) 
Production cost figures 1-26 

Products, per capita consumption of 7 
PROFITS 

— in 60 Knes and trades 116. 117 

— typical gross 116,117 

— typical net, for retail stores 

116. 117, 118, 136, 138 



Raw materials for manufacturing 18-28 
Recapitulation of wholesale trade 37 

Rent costs 63, 167 



INDEX 



179 



RETAIL 

— b(K)k stores 152 

— ^hain stores 105, 106, 107 

— changes in firms 168, 169 

— clothing stores 146, 147 

— cost averages from the books of 

1,569 concerns 138-152 

— cost figures 87-159 

— department stores 122 

—drug stores 121. 147, 148 

—dry goods stores 138, 139, 140 

— furniture stores 148, 149 

—groceries 120, 140, 142. 143 

— hardware stores 124, 145, 146 

—jewelry stores 120, 121, 149, 150, 151 
—lumber dealers 153-lPO 

—profits 116, 117. 118, 136. 138 

—salaries 109. 157 

— shoe stores 124. 125, 151, 152 

— variety stores 145 

— vehicle stores 143, 144 

RETAIL DEALERS 

— ^number in United States by lines 

89, 90, 91, 92, 93 
— ^number of concerns by states 

94, 95, P6, 97 
— per capita figures by lines 92, 93 

RETAILING 

— commercial mortalitv figures for 

160, 161. 162. 163, 164. 165, 166 
— number of persons engaged in 98, 100 



Sugar industry 
Supply costs 



23 
127, 159 



s 



61. 109, 157 



Salaries, costs of 

SELLING COSTS 

—retail 103. 104, 105 

— wholesale 52, 53 

Shoes (See Boots and Shoes) 
Silk industry 20 

Slaughtering and meat-packing industry 

23 
Southern Wholesale Grocers' Asso- 
ciation 75, 76, 77, 78, 79 

STATES 

— location of retail concerns by 

94, 95, 96, 97 
— location of wholesalers by 37, 38. 39 
— number of manufacturers in each 

38 
— wool industry, concentration by 11 
— worsted industry, concentration of 

12 



TURNOVER 

—rate of . by lines 69. 109. 112.114,116 
Typical profits and costs by trades 120 



Variety stores, costs of 
Vehicle stores, costs of 



w 



144. 145 
143. 144 



Wages (See Salaries and Labor) 
WHOLESALE 

— boots and shoes 37, 40. 41. 42, 52, 

54. 57, 58, 61, 62, 63, 64, 67, 68, 69, 73 

—clothing 40, 44, 45, 53, 54, 56. 57, 

58, 61. 62. 63. 64, 67, 68, 69, 70, 74 

— cost figures 39-41 

— dealers by lines 35, 36, 37 

—drugs 37, 40, 45, 49, 53, 54. 57, 58, 

61, 62, 63, 64, 67, 68, 69, 73 

—dry goods 36, 40, 50. 52, 53, 56, 58, 

61, 62, 63, 64, 67, 68, 73, 74 

— electrical goods 40, 49, 50, 53, 54, 

56, 57, 58, 60. 62, 63, 64, 67, 68, 70, 

71, 75 

—grocers 36, 37, 40, 42, 43, 44, 53, 

54, 56, 57, 58, 61, 62, 63, 64, 66, 

68, 69, 70, 72, 75, 76, 77, 78, 79 

—hardware 37, 40, 48, 49, 53, 54, 56, 

57, 58, 61, 62, 63, 64, 67, 68. 

69, 71, 72, 74, 75 

— jewelry 37 

— profits 120 

WHOLESALE DEALERS 

— commercial mortality figures for, 

80, 81, 82, 83 84 
— location of 37, 38, 39 

— number of, in United States, by 

lines 31, 32, 33 

— recapitulation 
Women's clothing 
WOOL 
— fine 

— value of products 
Wool industry, analvsia of 

11, 12, 13, 14, 15, 19 
Worsted industry, analysis of 

11. 12, 13, 14, 15 



37 
15, 17 



12, 13 
15, 16 



